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This paper claims that distance alone is a poor proxy for international transport costs in gravity equations. We develop a theoretical framework with a manufacturing and a transport sector, where the level of manufacturing exports determines the demand for transport. Above a certain threshold,...
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theory of individual investment decisions allows us to analyze self-selection patterns across differences in wages and …Borjas (1987, 1991 and 1994) developed the self-selection theory, applying Roy's model (1951) to migration studies. He … the individual investment decision theory (Human Capital theory), applying simulated data by Monte-Carlo method. The …
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analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My results suggest … raises growth of technology, labor productivity and real wages. I show, however, that a slowdown in productivity and … stagnation of real wages can in this setting constitute two sides of the same coin as a result of the shift in employment: In the …
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workers and therefore to higher wages, or so the often cited rent-sharing theory of multinational firms explains. But studies … positively related to wages and are more prevalent in foreign than in domestically owned firms (for example size, capital … relationship between ownership and wages for the population of Slovenian joint stock companies, while accounting for "spatial …
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While there is a wealth of literature dealing with the spatial nature of knowledge and its transferral, I argue that the underlying mechanisms have not been sufficiently understood. Existing research relating the geography of inflows to firm productivity does not adequately address firm and...
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