Question: Suppose that there are two countries with different levels of

Suppose that there are two countries with different levels of total factor productivity, and that these differences exist because of barriers to technology adoption in the low-productivity country. Also suppose that these two countries do not trade with each other. Now, suppose that residents of each country were free to live in either country. What would happen, and what conclusions do you draw from this?


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  • CreatedDecember 05, 2014
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