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Economies with better developed financial sectors have a comparative advantage in manufacturing industries. A two-sector model shows the sector with large scale economies profiting more than the other from a well-developed financial sector. In countries with higher levels of financial...
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between offshoring and exports. We model a world consisting of many advanced countries that trade differentiated goods among … world economy allows more final goods producers to become exporters and raises the export quantities of incumbent exporters …
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In this paper we argue that the surge in world trade over the two decades preceding the global downturn of 2008-09 can …
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