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Firms are heterogeneous, even within narrowly defined sectors. This paper surveys the relevant theoretical and empirical literature on firm heterogeneity and external trade. By innovatively exploiting rich cross-country micro-aggregated data sourced from the ECB Competitiveness Research Network...
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information technology and the computer age, induced firms to shift away from labor and toward capital. The lower price of … influencing factor shares such as increasing profits, capital-augmenting technology growth, and the changing skill composition of …
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