This comment shows that neither is the solution in Delias' paper(1986) a competitive equilibrium under balanced trade nor is hisempirical analysis implied by his model. Labor is included in Delias' model to justify his empirical strategy. However, the adequacy of Delias' model (with labor) is rejected by a goodness-of-fittest. Thus Delias' main empirical conclusion that the comovementsof output are due to the common production shocks rather than trade links is not justified.