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Definitions of Factor Abundance and the Factor Content of Trade

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Author Info
Henry Thompson ()

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Abstract

This paper points out that the different definitions of factor abundance in the empirical trade literature are weaker than in the Heckscher-Ohlin model, which compares endowments of two factors across two countries. These different definitions in practice lead to different factor abundance rankings when there are three or more countries or factors. A lack of correlation between a weak measure of factor abundance and the factor content of trade provides no ground to claim that factor proportions trade theory fails. A working definition of factor abundance more in line with the traditional one is proposed. Copyright Kluwer Academic Publishers 1999

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File URL: http://hdl.handle.net/10.1023/A:1008333714210
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Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 10 (1999)
Issue (Month): 4 (October)
Pages: 385-393
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:openec:v:10:y:1999:i:4:p:385-393

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Web page: http://www.springerlink.com/link.asp?id=100323

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Related research
Keywords: factor abundance; factor content;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Maskus, Keith E., 1985. "A test of the Heckscher-Ohlin-Vanek theorem: The Leontief commonplace," Journal of International Economics, Elsevier, vol. 19(3-4), pages 201-212, November. [Downloadable!] (restricted)
  2. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-87, December. [Downloadable!] (restricted)
  3. Bowen, Harry P & Leamer, Edward E & Sveikauskas, Leo, 1987. "Multicountry, Multifactor Tests of the Factor Abundance Theory," American Economic Review, American Economic Association, vol. 77(5), pages 791-809, December. [Downloadable!] (restricted)
    Other versions:
  4. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-21, August. [Downloadable!] (restricted)
  5. Leamer, Edward E, 1974. "The Commodity Composition of International Trade in Manufactures: An Empirical Analysis," Oxford Economic Papers, Oxford University Press, vol. 26(3), pages 350-74, November. [Downloadable!] (restricted)
  6. Davis, Donald R. & David E. Weinstein & Scott C. Bradford & Kazushige Shimpo, 1997. "Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works," American Economic Review, American Economic Association, vol. 87(3), pages 421-46, June. [Downloadable!] (restricted)
  7. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Farhad Rassekh & Henry Thompson, 2002. "Measuring Factor Abundance Across Many Factors and Countries," Open Economies Review, Springer, vol. 13(3), pages 237-249, July. [Downloadable!] (restricted)
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