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Some Empirical Support for the Heckscher-Ohlin Model of Production

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Author Info

  • Richard A. Brecher
  • Ehsan U. Choudhri

Abstract

This paper develops empirically feasible tests of the production side of the Heckscher-Ohlin model of international trade in the case where factor prices are not equal between countries. To allow for factor-price differences across industries within each country, three variants of the model are considered. Tests of these variants are implemented.for Canada and the United States. Results are favorable to all three variants, especially the variant that allows imperfect factor mobility within each country. Thus, the paper finds some support for the Heckscher-Ohlin model of production.

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File URL: http://links.jstor.org/sici?sici=0008-4085%28199305%2926%3A2%3C272%3ASESFTH%3E2.0.CO%3B2-B
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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 26 (1993)
Issue (Month): 2 (May)
Pages: 272-85

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Handle: RePEc:cje:issued:v:26:y:1993:i:2:p:272-85

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Cited by:
  1. Donald R. Davis & David E. Weinstein, 1996. "Does Economic Geography Matter for International Specialization?," NBER Working Papers 5706, National Bureau of Economic Research, Inc.
  2. Daniel Bernhofen, 2010. "The Empirics of General Equilibrium Tade Theory: What Have we Learned?," CESifo Working Paper Series 3242, CESifo Group Munich.
  3. Daniel Bernhofen, 2009. "Predicting the pattern of international trade in the neoclassical model: a synthesis," Economic Theory, Springer, vol. 41(1), pages 5-21, October.
  4. Uday Rajan, 1995. "Refutable Implications of the Heckscher-Ohlin Model," International Trade 9502001, EconWPA.
  5. Peter K. Schott, 2001. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," NBER Working Papers 8244, National Bureau of Economic Research, Inc.
  6. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-94, September.
  7. Colin Carter & Xianghong Li, 2004. "Changing trade patterns in major OECD countries," Applied Economics, Taylor and Francis Journals, vol. 36(14), pages 1501-1511.
  8. Keith E. Maskus & Allan Webster, 1995. "Factor Specialization in U.S. and U.K. Trade: Simple Departures from the Factor-content Theory," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 419-439, September.
  9. Jim Malley & Thomas Moutos, 1998. "Real Wages and the Structure of Imports: Theory and Evidence," Working Papers 9821, Business School - Economics, University of Glasgow.

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