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A Test of the Factor Endowments Model of Trade in a Rapidly Industrializing Country: The Case of Korea

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  • Ramazani, Reza M
  • Maskus, Keith E

Abstract

The authors perform a fully specified test of the Heckscher-Ohlin-Vanek (HOV) multifactor content theorem of international trade in the context of a rapidly industrializing economy, the Republic of Korea, in 1970 and 1980. The test involves a comparison of independent measures of relative factor endowments with endowment rankings revealed by Korea's international trade and total factor intensities. Interest arises in this effort because Korea's industrialization presents a new set of circumstances in which to test the Heckscher-Ohlin-Vanek theorem. The results strongly suggest that the revealed factor endowments departed significantly from actual factor supplies. The authors discuss potential reasons for this divergence. Copyright 1993 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 75 (1993)
Issue (Month): 3 (August)
Pages: 568-72

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Handle: RePEc:tpr:restat:v:75:y:1993:i:3:p:568-72

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Vermeulen, Philip, 2004. "Factor content, size, and export propensity at the firm level," Economics Letters, Elsevier, vol. 82(2), pages 249-252, February.
  2. Beatriz Muriel & Cristina Terra, 2009. "Sources of Comparative Advantages in Brazil," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 15-27, 02.
  3. Elio Londero, 2001. "Primary-input intensities under alternative measures of rent content," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(4), pages 429-450.

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