This study compares the results of skill content tests for types of trade flows under alternative assumptions about the technologies used to produce imports and exports. For trade between high- and middle-income countries, we show that the match between the actual skill content of trade and that predicted by endowments in a Heckscher-Ohlin-Vanek framework improves substantially if technological heterogeneity across countries is allowed for and if the factor content of intra-industry trade is included with that of inter-industry trade. Endowment differences are important in explaining net trade and vertical intra-industry trade, but not horizontal intra-industry trade. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2009.
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Volume (Year): 71 (2009) Issue (Month): 5 (October) Pages: 601-619 Download reference. The following formats are available: HTML
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