Title

Empirical Foundations for the Resurrection of Heckscher–Ohlin Theory

Author Info

Peter Egger, Eidgenössische Technische Hochschule Zúrich
Kathryn G. Marshall, California Polytechnic State University - San Luis Obispo
Eric O'N. Fisher, California Polytechnic State University - San Luis ObispoFollow

Recommended Citation

Postprint version. Published in International Review of Economics & Finance, Volume 20, Issue 2, April 1, 2011, pages 146-156.

The definitive version is available at https://doi.org/10.1016/j.iref.2010.11.004.

Abstract

We decompose the factor content of trade into Heckscher–Ohlin–Vanek trade and Ricardian trade. We measure factor content using only the United States' technology and also as Leontief advocated, using the local technology. In either case, differences in endowments are quite important in explaining the factor content of trade. If one uses raw estimated coefficients as a means of comparison, differences in endowments are ten times as important as differences in technology.

Disciplines

Economics

Copyright

2011 Elsevier.