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Global Factor Trade with Differentiated Factor Prices and Factor Intensities

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Author Info
Yun-kwong Kwok

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Abstract

The assumption of internationally identical factor intensity techniques may be one of the major causes of the HOV model's poor performance. To relax this assumption, detailed input-output data are required to compute the factor intensity techniques used in different countries; however, these data are not readily accessible for many countries. This paper takes an alternative approach by introducing an inferring method that can infer the factor intensity techniques of different countries based on our knowledge about the US factor intensity techniques and the international factor price differences. The original HOV model is then modified accordingly

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Paper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 259.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:ausm04:259

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Related research
Keywords: Heckscher-Ohlin-Vanek (HOV) factor content of trade

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Find related papers by JEL classification:
F1 - International Economics - - Trade
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
D2 - Microeconomics - - Production and Organizations
D5 - Microeconomics - - General Equilibrium and Disequilibrium

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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. Hakura, Dalia S., 2001. "Why does HOV fail?: The role of technological differences within the EC," Journal of International Economics, Elsevier, vol. 54(2), pages 361-382, August. [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)
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  4. Antoni Estevadeordal & Alan M. Taylor, 2002. "A Century of Missing Trade?," American Economic Review, American Economic Association, vol. 92(1), pages 383-393, March. [Downloadable!] (restricted)
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  5. 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)
  6. Elhanan Helpman, 1999. "The Structure of Foreign Trade," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 121-144, Spring. [Downloadable!] (restricted)
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  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)
  8. Staiger, Robert W., 1988. "A specification test of the Heckscher-Ohlin theory," Journal of International Economics, Elsevier, vol. 25(1-2), pages 129-141, August. [Downloadable!] (restricted)
  9. Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December. [Downloadable!] (restricted)
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