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This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for sitations with outward knowledge spillovers. Within this framework Samuelson's "Act II" effects may occur....
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Globalization may impose a double-burden on low-skilled workers. On the one hand, the relative supply of low … test the predictions of the model. Our results show that greater financial globalization and development increases the … dampening impact. -- labor-market volatility ; skill levels ; financial globalization …
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This paper proposes a simple multi-industry trade model with search frictions in the labor market. Unimpeded access to global financial markets enables capital owners to invest abroad, thereby fostering unemployment at the extensive industry margin. Whether a country benefits from FDI in terms...
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