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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

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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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Publisher 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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  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. [Downloadable!] (restricted)
    Other versions:
  2. 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. [Downloadable!]
  3. Peter K. Schott, 2003. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," American Economic Review, American Economic Association, vol. 93(3), pages 686-708, June. [Downloadable!]
    Other versions:
  4. Uday Rajan, 1995. "Refutable Implications of the Heckscher-Ohlin Model," International Trade 9502001, EconWPA. [Downloadable!]
  5. Jim Malley & Thomas Moutos, 1998. "Real Wages and the Structure of Imports: Theory and Evidence," Working Papers 9821, Department of Economics, University of Glasgow.
  6. James Harrigan, 1996. "Technology, Factor Supplies and International Specialization: Estimating the Neoclassical Model," NBER Working Papers 5722, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Colin A. Carter & Xianghong Li, 2004. "Changing trade patterns in major OECD countries," Applied Economics, Taylor and Francis Journals, vol. 36(14), pages 1501-1511, August. [Downloadable!] (restricted)
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