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Testing two trade models in Latin American agriculture

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  • Carlos Anthony Arnade

Abstract

The Heckscher–Ohlin and Markusen models state that countries export the goods intensive in the use of their relatively abundant factor. Latin American agricultural trade is consistent with both models. The paper then shows that Latin American agricultural trade is primarily explained by country differences in relative factor abundance between countries rather than differences in technology. This finding does not reject the Heckscher–Ohlin model but rejects one of Markusen's models.

Suggested Citation

  • Carlos Anthony Arnade, 1994. "Testing two trade models in Latin American agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 10(1), pages 49-59, January.
    • Handle: RePEc:bla:agecon:v:10:y:1994:i:1:p:49-59
    DOI: 10.1111/j.1574-0862.1994.tb00288.x
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    1. James R. MARKUSEN, 2021. "Factor Movements And Commodity Trade As Complements," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 15, pages 325-340, World Scientific Publishing Co. Pte. Ltd..
    2. Leamer, Edward E, 1980. "The Leontief Paradox, Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 495-503, June.
    3. Lee, Chinkook & Wills, Darryl & Schluter, Gerald, 1988. "Examining the leontief paradox in U.S. agricultural trade," Agricultural Economics, Blackwell, vol. 2(3), pages 259-272, November.
    4. Baldwin, Robert E, 1971. "Determinants of the Commodity Structure of U.S. Trade," American Economic Review, American Economic Association, vol. 61(1), pages 126-146, March.
    5. Ball, V. Eldon, 1984. "Measuring Agricultural Productivity: A New Look," Staff Reports 277585, United States Department of Agriculture, Economic Research Service.
    6. 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.
    7. Markusen, James R & Wigle, Randall M, 1990. "Explaining the Volume of North-South Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1206-1215, December.
    8. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, September.
    9. 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 350-374, November.
    10. Stern, Robert M. & Maskus, Keith E., 1981. "Determinants of the structure of U.S. foreign trade, 1958-1976," Journal of International Economics, Elsevier, vol. 11(2), pages 207-224, May.
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    Cited by:

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    2. Salvacruz, Joseph C., 1994. "Technological Change And Agricultural Trade Patterns," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(1), pages 1-6, February.
    3. Reed, Michael & Salvacruz, Joseph, 1995. "Technological Progress and International Trade: The Case of the Less Developed ASEAN Countries," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183397, International Association of Agricultural Economists.

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