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specialization of countries within GVCs in a world with barriers to international trade. With costly trade, the optimal location of …
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We study the effect of spatial inequality on economic activity. Given that the relationship is highly simultaneous in nature, we use exogenous variation in geographic features to construct an instrument for spatial inequality, which is independent from any man-made factors. Inequality measures...
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specialization of countries within GVCs in a world with barriers to international trade. With costly trade, the optimal location of …
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