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Faktorgehalt und internationaler Handel
[Factor content and international trade]

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  • Gilroy, Bernard Michael

Abstract

The empirical relevance of the Heckscher-Ohlin "factor abundance" theorem of international trade has been the subject of many studies, beginning with the pioneering one of Leontief (1953). Accordingly, relative factor endowments should affect observed trade patterns. The principle purpose of this paper is to demonstrate recent theoretical advances applying the factor content of trade to analyze existing relationships between factor prices and factor content as a means of testing the theorem empirically. At the empirical level, however, it is found that the literature on this important subject still offers no generally accepted answer. This may not be as surprising as first glance suggests, given the rising importance of alternative determinants of trade flows other than factor abundancyl.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21037.

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Date of creation: 1991
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Handle: RePEc:pra:mprapa:21037

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Keywords: international trade; factor content; Heckscher-Ohlin theorem;

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References

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  1. Teitel, Simon, 1976. "Labor homogeneity, skill intensity and factor reversals - an international comparison," Journal of Development Economics, Elsevier, Elsevier, vol. 3(4), pages 355-366, December.
  2. Ken‐ichi Inada, 1967. "A Note on the Heckscher‐Ohlin Theorem," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 43(1), pages 88-96, 03.
  3. Neary, J Peter & Schweinberger, Albert G, 1984. "Factor Content Functions and the Theory of International Trade," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3, C.E.P.R. Discussion Papers.
  4. Gilroy, Bernard Michael, 1989. " Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 3(4), pages 325-43.
  5. Lars E.O. Svensson, 1982. "Factor Trade and Goods Trade," NBER Working Papers 0999, National Bureau of Economic Research, Inc.
  6. Dixit, Avinash & Woodland, Alan, 1982. "The relationship between factor endowments and commodity trade," Journal of International Economics, Elsevier, Elsevier, vol. 13(3-4), pages 201-214, November.
  7. James R. Williams, 1970. "The Resource Content in International Trade," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 3(1), pages 111-22, February.
  8. Stern, Robert M, 1976. "Some Evidence on the Factor Content of West Germany's Foreign Trade," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(1), pages 131-41, February.
  9. Yeung, Patrick & Tsang, Herbert, 1972. "Generalized Production Function and Factor-Intensity Crossovers: An Empirical Analysis," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 48(123), pages 387-99, September.
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