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in the long run, and specialization will lead to faster output growth. If coefficient is greater than zero, output growth … specialization has no impact on the rate of output growth …
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the per capita GRP is consistent with the endogenous growth model where profit maximizing firms choose the capital … intensity of the technology. This implies that the inequality between regions will only exacerbate and the central government … may wish to invest more in low-growth regions to alleviate disproportional development …
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