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This is the sequel to the paper [23]. In this paper, we construct the virtual moduli cycles of the degeneration of the moduli of stable morphisms constructed in [23]. We also construct the virtual moduli cycles of the moduli of relative stable morphisms of a pair of a smooth divisor in a smooth variety. Based on these, we prove a degeneration formula of the Gromov-Witten invariants.
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Jun Li (2002) studied this question.
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