International 1

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By John Black, Alasdair I. MacBean (eds.)

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10) Minerals: value of production of minerals: bauxite, copper, fluorspar, iron ore, lead, manganese, nickel, potash, pyrite, salt, tin, zinc. 6 (Leamer 1984), which contains prices and values of these minerals, indicates that copper and iron ore make up about 50 per cent of the value of minerals. (11) Oil: value of oil and gas production. As Leamer notes, most of us would expect the first three or four to provide the principal positive contributions to comparative advantage in manufactured goods.

This procedure can lead both to poor predictions and bad policy advice. If, for example, an increase in the physical stock of capital has effects on trade patterns and income which in turn affect the magnitude of the capital stock (either by their effects on savings and investment or on the propensity to save) and other basic determinants of the structure of trade, the usual analytical approach is inappropriate for predicting the behaviour of the structure of trade. Furthermore, post-1945 economic history strongly supports the view that the nature of the policies adopted for the purpose of increasing Robert E.

Four of the goods aggregates refer to manufactures. In order of increasing sophistication, they are: Labour-intensive goods (SITC(R) 66, 82, 83, 84, 85, 89, 91, 93, 96); Capital-intensive goods (61, 62, 65,67, 69, 81); machinery (71, 72, 73, 86, 95); and che';llicals (5). The eleven factor groups are as follows (1) Capital: accumulated and discounted gross domestic investment flows since 1948, assuming an average life of 15 years. (2) Labour 1: number of workers classified as professional or technical.

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