Economies of scale and domestic divergences offer an important scope for gains from industrial integration among developing countries. Underutilized industrial capacity, together with distorting policies and imperfections in factor markets, provides a rationale for countries to swap opportunities for industrial expansion. Through integration, Ghana and the Ivory Coast stand to achieve welfare gains of 33 and 22 percent of gross output in world prices. About two-fifths of these gains have their source in Viner's trade-creation effects, one-fifth in Corden's cost-reduction effects, and two-fifths in the newly suggested production effects.

Economies of scale and domestic divergences offer an important scope for gains from industrial integration among developing countries. Underutilized industrial capacity, together with distorting policies and imperfections in factor markets, provides a rationale for countries to swap opportunities for industrial expansion. Through integration, Ghana and the Ivory Coast stand to achieve welfare gains of 33 and 22 percent of gross output in world prices. About two-fifths of these gains have their source in Viner's trade-creation effects, one-fifth in Corden's cost-reduction effects, and two-fifths in the newly suggested production effects.

Finally, for completeness we should note that later work (Harvard Discussion Paper No. 234, 1971) has shown that when investors' risk-aversions are functionally related to their ending wealth, the investor's personal equilibrium depends upon a combination of his risk-aversion and its first derivative, but the market price of risk aggregates the investor's more complex marginal rates of substitution of return and risk in exactly the same way as it aggregates investors risk-aversions per se in simple situations. iMoreover, all the statements made above on the basis of aggregations of risk-aversions are shown to be valid in the more complex analysis.