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This paper investigates whether the relatedness of populations across the world shapes international trade flows. Using data on common ancestry for 172 countries covering more than 99% of global trade, we document that country pairs with a larger ancestral distance are less likely to trade with...
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Internationalisation of all the world economy need some better system for sustaining the international relationship among the nations. Globalisation is required for cross border integration, broad market expansive scope for domestic traders, economic integration, internationalization of all the...
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We present a gravity model that accounts for multilateral resistance, firm heterogeneity and country-selection into trade, while accommodating asymmetries in trade flows. A new equation for the proportion of exporting firms takes a gravity form, such that the extensive margin is also affected by...
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