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The second main section of the paper employs the instrument to investigate the impact of trade on income.We estimate cross-country regressions of income per person on international trade and country size by instrumental variables,and compare the results with ordinary least-squares estimates of the same equations.There are five main findings.
The second main section of the paper employs the instrument to investigate the impact of trade on income.We estimate cross-country regressions of income per person on international trade and country size by instrumental variables,and compare the results with ordinary least-squares estimates of the same equations.There are five main findings.
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