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...

We formulate a simple model that captures two recent hypotheses: (i) that countries with an abundant absolute endowment of skilled labour 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....