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Figure 16 compares industrial roundwood production in Canada with production in the four Southern plantation producers. Since 1962, all five countries have markedly increased industrial roundwood production. For example, Canada has doubled industrial roundwood production over the period. However, as the graph shows, the four Southern plantation producers have increased production by an even greater proportion. Indeed, they now account for about 30 percent of the total industrial roundwood production from these five countries combined, compared with only 20 percent at the start of the period.

22 Porter's theory of competitive advantage, in part, attempts to explain why differences arise in opportunity costs between countries. It provides an alternative explanation to the earlier Heckscher-Ohlin theorem, which assumed productivity of factors are homogenous between countries and argues that a country has a comparative advantage in goods that make intensive use of the country's relatively abundant factors. A more detailed discussion can be found in, for example, Salvatore (1996).

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