OUR object in this paper is to study the capital intensity of some of the industries of the underdeveloped economies and to compare it with the capital intensity of the corresponding industries of the developed economies. An underdeveloped economy is characterized by a large quantity of labor relative to the capital stock and a low propensity to save out of a given income, while a developed economy has a large capital stock relative to the available labor force and a high propensity to save out of a given income. We shall expect, therefore, that the real wage rate will be lower and the rate of