On technical progress and the boundary of non-traded goods |
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| Institution: | 1. Department of International Relations, Kobe City University of Foreign Studies, 9-1 Gakuen-Higashimachi, Nishi-ku, Kobe 651-2187, Japan;2. College of Business Administration, Ritsumeikan University, 2-150 Iwakura-cho, Ibaraki, Osaka 567-8570, Japan;1. Department of Economics and Finance, City University of Hong Kong, Hong Kong;2. School of Economics, Finance and Marketing, RMIT University, Australia;1. CREST-Ensai, France;2. ULCO, France;3. Université Lumière Lyon 2, Univ Lyon, GATE L-SE UMR 5824. 93 Chemin des Mouilles, BP167, 69131 Ecully Cedex, France;4. Université d’Evry, France |
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| 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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