Heckscher-Ohlin trade theory suggests that greater openness tends to enlarg
e inter-country differences in stocks of skill (or human capital), which ne
w growth theory suggests would cause inter-country divergence of per capita
incomes. Econometric analysis of data on about 90 countries during 1960-90
confirms that greater openness tends to cause divergence of secondary and
tertiary enrolment rates between more-educated and less-educated countries,
and also between land-scarce and land-abundant countries. These findings m
ay have implications for the optimal choice of trade policies by poor count
ries.