This paper measures the degree of returns to scale at the two-digit Standard Industrial Classification (SIC) in Canadian manufacturing employing both gross output and value added data. Using a model developed by R. J. Caballero and R. K. Lyons, the study distinguishes between internal and...

This paper develops a model of North-South trade with a continuum of goods, external economies of scale and international capital mobility. The North-South wage gap must exceed any difference in labor quality for South to overcome the established external economies in North. In equilibrium North...