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We show that in multi-sector optimal growth models, where the technology satisfies a simple reachability condition, infinite horizon programs which satisfy the competitive conditions are optimal. We provide examples of a variety of production models where the reachability condition is satisfied....
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This paper develops a theory of strategic vertical DFI (direct foreign investment) to suggest an explanation for the …-haven effects based on environmental compliance costs might be complicated by such strategic behaviour. The theory provides … particular implications for the empirical research in this area and some broader implications for the theory of DFI …
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