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Aid allocation and the transfer paradox in a small country

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Author Info
Choi, E Kwan

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Abstract

This paper investigates long run consequences of international trade between two economies inhabited by two distinct races using different languages. If wages are not equal in autarky, free trade encourages the workers of the low-wage country to learn the language of the high-wage country. As the bilingual population increases in the low-wage country, products are increasingly produced in the dominant language version. In the long run the language of the high-wage country becomes universally adopted.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11373.

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Date of creation: 10 Feb 2004
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Publication status: Published in International Review of Economics and Finance, 2004, Vol. 13, pp. 245-51.
Handle: RePEc:isu:genres:11373

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Web page: http://www.econ.iastate.edu
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F1 - International Economics - - Trade

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This page was last updated on 2009-12-21.


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