FACTOR PROPORTIONS, RELATIVE EFFICIENCY AND DEVELOPING-COUNTRIES TRADE

This study attempts to assess the extent to which LDC trade in manufactures can be explained by the factor proportions theory and the economies-of-scale account on the one hand, and by commodity characteristics that affect relative efficiency on the other. Among the relative efficiency characterictics that affects trade patterns are R & D intensity, total factor productivity in the more developed countries, factory size, and some input-output measures of the degree to which the industry interacts with the rest of the economy. © 1991.