Several trade-based measures of product variety have recently been used implicitly to represent states of technology, promoting long-run growth. In this paper, we define the state of technology as the range of specialised production processes and propose the variety of capital goods available...

Within a standard gravity framework I explore the impact of country size and trade liberalisation on extensive and intensive margins of imports across broad categories of goods. This allows testing hypotheses from two distinct strands of the trade literature, i.e., vertical integration versus...