1.   Hence relative scale-adjusted commodity prices and relative factor rewards provide a valid prediction of the intersectoral pattern of trade.

2.   In particular, size differences can lead to differences in relative factor rewards and scale-adjusted relative commodity prices.

3.   It remains therefore to consider relative commodity prices and relative factor rewards.

4.   Moreover in the present context apart from factor rewards, output levels per firm in the manufacturing sector are also equalized.

5.   Now let us consider the predictive power of factor rewards.