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As spatial diversity of economic development is one of the main problems of modern economies, researchers have attempted to define the conditions and factors influencing this phenomenon. Among others, two intangible factors are suggested: human capital and social capital (Herbst ed. 2007). The...
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This paper examines the welfare implications associated with different degrees of diversity or similarity between migrants and natives under both migration and trade. We use a general equilibrium model of migration, human capital and social capital and find that there are three equilibrium...
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