Technical Progress and the Boundary of Non-Traded Goods

Document Type

Article

Journal/Book Title/Conference

Mathematical Social Sciences

Volume

60

Publication Date

2010

First Page

204

Last Page

209

Abstract

We use a Ricardian model with continuum of goods to study the effect of technical progress on the endogenously determined ranges of non-traded, exported, and imported goods. We show that if technical progress is unbiased (biased toward the goods that a country has more comparative advantage), the range of non-traded goods increases (decreases).

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