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spatial panel model with fixed effects. The model presented provides evidence of the importance of increasing returns to scale …
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of externalities from neighbouring regions. The spatial Durbin fixed-effect panel specification captures spatial feedback …
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This paper discusses the different functions that capital markets and banks have in economic development, and it reviews the debate about marketbased vs. bank-based financial systems. Using data for a sample of 40 countries over the period 1975-98, the paper then shows that variation in both...
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