1. which are only produced in country B and are exported to country A. Finally, the goods for which neither country has a strong comparative advantage, the goods in (i A , i B ), are produced in both countries and are not traded;B , the goods in (i B , 1)
2. Depending on the elasticity of substitution in consumer preferences, the expansion of exports could also take place in the intensive margin, i.e. exporting higher quantity of each good but the same or smaller range of goods. We have chosen the case where the expansion occurs in the extensive margin as it is easier to visualize;Jonathan Robert;American Economic Review,2007
3. Comparative Advantage, Trade and Payments in a Ricardian Model with a Continuum of Goods;Rudiger Dornbusch;American Economic Review,1977
4. Technology, Geography, and Trade