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Economic development has increasingly become synonymous with “economic upgrading” within global production networks (GPNs). Yet, while there has been much research on connecting economic upgrading with economic growth and international trade, there has been less analysis of the relationship between economic and “social upgrading”, i.e. improvements in the wages, conditions, rights, gender equality...
Financial openness is often associated with higher rates of economic growth. We show that the impact of openness on factor productivity growth is more important than the effect on capital growth. This explains why the growth effects of liberalization appear to be largely permanent, not temporary. We attribute these permanent liberalization effects to the role financial openness plays in stock market...
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