Predicting the Factor Content of Foreign Trade: Theory and Evidence
AbstractThis paper examines the multi-cone specification of the factor proportion theory of international trade. I show that Helpman's bilateral restrictions on the factor of content of trade, which have found recent empirical support by Choi and Krishna (2004), need to be amended to account for multilateralism. I identify additional restrictions and show that these restrictions form the building block for a multi-cone factor content prediction which generalizes Alan Deardorff's well-known chain of comparative advantage prediction to multiple countries and factors. Applying Choi and Krishna 's data set to this multi-lateral specification, I find little empirical support for the multi-cone prediction.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/11.
Date of creation:
Date of revision:
Contact details of provider:
Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/gep/index.aspx
More information through EDIRC
Factor content of trade; multi-cone Heckscher-Ohlin model;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Daniel Bernhofen, .
"Predicting the Pattern of International Trade in the Neoclassical Model: A Synthesis,"
08/24, University of Nottingham, GEP.
- Daniel Bernhofen, 2009. "Predicting the pattern of international trade in the neoclassical model: a synthesis," Economic Theory, Springer, vol. 41(1), pages 5-21, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes).
If references are entirely missing, you can add them using this form.