ABSTRACT
Skills have long been argued to be a source of comparative advantage for developed countries. From the findings of Leontief (1953), the standard Heckscher-Ohlin framework of international trade theory has been subjected to the argument that the foundation for comparative advantage is human rather than physical capital. Findlay and Kierzkowski (1983) have derived a theoretical adaptation of the Heckscher-Ohlin model in which comparative advantage is based upon human capital. Their modification, in effect, argues that a capital-abundant country will tend to export skill-intensive goods and to import goods which are intensive in unskilled labour.
