* Professor of Political Economy at the Johns Hopkins University and Consultant to the World Bank. This paper was prepared in the framework of the World Bank's research project, “Changes in Comparative Advantage in Manufactured Goods” (RPO 672–41). The author is greatly indebted to Marcus Noland for reviewing alternative explanatory variables and suggesting possible specifications and to Luc Bauwens for undertaking the arduous task of estimation and offering valuable comments on the previous draft of the paper. Thanks are also due to Linda Pacheco for data collection and to Jerzy Rozanski for generating the trade data. Finally, the author is grateful to anonymous referees for their useful comments and suggestions. However, he alone is responsible for the opinions expressed in the paper that should not be interpreted to represent the views of the World Bank
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Béla Balassa (1986) studied this question.
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