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experiments to assess the welfare effects of trade and investment liberalization in general equilibrium. Specifically, we address … the question of whether and under which circumstances a single versus a combined trade/investment liberalization strategy …. The focus of this paper is to look at three highly relevant questions. First, when is investment liberalization beneficial …
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In the transfer problem debate with Keynes, Ohlin suggests that income effects should lessen relative price variations necessary to produce trade surpluses, and that that impact is related to the degree of openness of the economy. We illustrate this mechanism in a simple model, and take it to...
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