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7. Legal system and economic growth Suppose Hilary is considering making a business investment in a new factory and compares the policies and institutions in

7. Legal system and economic growth Suppose Hilary is considering making a business investment in a new factory and compares the policies and institutions in her home country and the country of Accidentia. Suppose that Accidentia has the same policies and institutions as Hilary's home country, except that it has fewer regulations limiting competitive entry into businesses and occupations. If Hilary wishes to invest in the country with the best prospects for economic growth, she would invest in

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