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National Repository of Grey Literature 1 records found  Search took 0.01 seconds. 
The origins of global imbalances
 Brůha, Jan ; Podpiera, Jiří
In this paper writers study the endogenous response of unequally developed regions to a drop in investment and trade costs in a general equilibrium model. The response is characterized by a rise in foreign direct investment in the underdeveloped region and increased consumption in the developed one, leading to trade imbalances between the regions. Writers hereby propose that declining investment and trade costs could have caused this century’s global imbalances.
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