Two questions in particular will be addressed. First, can earlier results for specific industries that suggest a positive relation between quality and capital-labour ratios of exporting countries be generalized to other industries? Second, what type of capital, physical or human, is most...

A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products with - in industries, whereas they import others. We examine this issue,...