Estimating the Heckscher-Ohlin model: Inverting the inverse matrix
AbstractThis paper estimates the Heckscher-Ohlin model with annual US data from 1949 to 2006 for outputs of manufactures and services with inputs of fixed capital assets and the labor force. Difference equation and error correction regressions provide estimated coefficients for the comparative static system. Tariffs on manufactures primarily raise the capital return in the estimated Stolper-Samuelson results. Factor price equalization does not hold for labor and capital. Inverting the estimated system inverse matrix provides evidence on production. The suggestions are capital biased production of manufactures, strong substitution of capital for labor, and strong labor substitution in manufactures.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 20 (2011)
Issue (Month): 2 (April)
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Web page: http://www.elsevier.com/locate/inca/620165
Estimation Heckscher-Ohlin Stolper-Samuelson;
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