| Abstract: | Country Size and Comparative Advantage: An Empirical Study.—The author formulates a simple model that captures two hypotheses: (i) that countries absolutely abundant in skilled labor will be net exporters in R&;D-intensive industries and (ii) that countries with a large domestic market will be net exporters in scale-intensive industries. The hypotheses are empirically examined by pooling the data into one regression of industry-specific net export shares on country and industry characteristics. The results offer relatively strong support for hypothesis (i) and some support for hypothesis (ii). The conclusions are the same as when studying the trade of each OECD country individually. JEL no. F12, F14 |
