Abstract: | Conclusions Apart from the commodity mix effect, exports, imports consumption and production respond identically to changes in relative
capital endowment, regardless of whether one refers to physical capital, human capital or total capital. Hence, when allowing
technology and product mix to vary, one cannot distinguish between export goods and import goods in terms of capital intensity.
These conclusions are still in agreement with Hirsch 1977, p. 418] who argues “Poor countries export low capital-intensive
and import high capital-intensive goods, while rich countries import low capital-intensive and export high capital-intensive
goods.” The only response that is significantly different is due to the commodity mix effect. |