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How does trade liberalization affect developing countries with large informal sectors?
Informality fundamentally changes how we think about the gains from trade. (1/5)
How does trade liberalization affect developing countries with large informal sectors?
Informality fundamentally changes how we think about the gains from trade. (1/5)
In settings with high informality, the gains from trade are significantly amplified by reductions in misallocation. During economic downturns, the informal sector acts as a buffer against unemployment but leads to larger aggregate real-income losses. econometricsociety.org/publications/e…View quoted post on X
