The paper shows that the relationship between GDP per capita and levels of specialization can be predicted differently depending on whether the intensive or the extensive margin is considered. It shows that at the extensive margin countries continuously diversify their exports and that...

Canada's trade diversification drive confronts daunting challenges given that economic geography places it deep in the gravity well of the United States while its main diversification opportunities require partnership with the US' chief geostrategic rival, China. In this note, I sketch out how...

We propose a short-run model of the extensive margin of trade and deploy it to distinguish and quantify domestic and cross-border margins. Our empirical focus is on the domestic extensive margin of trade (domestic distribution of a product) and its importance for quantifying policy and...