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Why do borders still matter for economic activity? The reunification of Germany in 1990 provides a unique natural … to trade between East Germany and West Germany were eliminated completely within a very short period of time. The …
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experiment. We analyze whether the slow-down in convergence in per capita income between East and West Germany since the mid-1990 …s and the lower international openness of East Germany are linked. We address the endogeneity of openness by adapting …
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