By contrast, the inequality is expected to rise in capital-rich countries, as the demand for and remuneration of capital (which is unequally distributed) will increase, while the demand for and remuneration of labour will fall. As predicted by HO-SS, the trade liberalization of the 19,h century raised domestic inequality in the rich New World and reduced it in the poor Old World. Likewise, Bourguignon and Morisson (1989) found that in 35 small developing countries trade liberalization reduced the income of the richest 20 per cent of the population and raised that of the bottom 60 per cent. Similar conclusions are arrived at by Wood (1984) in the case of the East Asian exporters of labour-intensive manufactured goods during the 1960s and the 1970s.