location patterns, unemployment rates, and fully endogenous productivity growth. We show that when the larger country offers … concentration and faster productivity growth, but higher unemployment for the smaller country. When similar labor market policies … concentration and slower productivity growth, while lowering unemployment in the larger country. …

determinants of cross-country differences in the persistence of productivity differentials Specifically, we focus on the effects of … convergence rates. Consistent with theories, the persistence of productivity differentials is found to be positively correlated …, productivity convergence appears to be enhanced by human capital but deterred by government spending. …