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Estimating the HOV Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom

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  • Maskus, Keith E
  • Webster, Allan

Abstract

The paper develops a version of the Heckscher-Ohlin-Vanek (HOV) theorem of parametric technological differences for application to US and UK data on the factor contents of trade, output, and consumption. A matched set of input-output tables, consumption and trade vectors, and labor occupations is constructed. The data allow estimation of factor-specific and industry-specific productivity differences for incorporation into a second-stage econometric approach to assessing the HOV model. The data support a general model with technical differences and measurement error. The implied ratio of US-to-UK expenditure levels exceeds the ratio based on published GNP data. Copyright 1999 by Blackwell Publishing Ltd.

Suggested Citation

  • Maskus, Keith E & Webster, Allan, 1999. "Estimating the HOV Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom," Review of International Economics, Wiley Blackwell, vol. 7(1), pages 8-19, February.
  • Handle: RePEc:bla:reviec:v:7:y:1999:i:1:p:8-19
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    Cited by:

    1. Arezki, Rabah & Fetzer, Thiemo & Pisch, Frank, 2017. "On the comparative advantage of U.S. manufacturing: Evidence from the shale gas revolution," Journal of International Economics, Elsevier, vol. 107(C), pages 34-59.
    2. Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
    3. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
    4. repec:wvu:wpaper:09-13 is not listed on IDEAS
    5. DUDLEY, Leonard & MOENIUS, Johannes, 2003. "Directed Technical Change and International Trade," Cahiers de recherche 2003-18, Universite de Montreal, Departement de sciences economiques.
    6. Carlos A. Cinquetti, 2007. "Technology Service And Factor Intensity: The Export Impact From Multinationals," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 056, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Keith E. Maskus & Shuichiro Nishioka, 2009. "Development‐related biases in factor productivities and the HOV model of trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(2), pages 519-553, May.
    8. Dudley, Leonard & Moenius, Johannes, 2007. "The great realignment: How factor-biased innovation reshaped comparative advantage in the U.S. and Japan, 1970-1992," Japan and the World Economy, Elsevier, vol. 19(1), pages 112-132, January.
    9. repec:cep:cepdps:dp1399 is not listed on IDEAS
    10. Carlos CINQUETTI, 2008. "Comparative Advantages and Average Costs Under Trade Protection," EcoMod2008 23800024, EcoMod.
    11. Artal-Tur, Andrés & Castillo-Giménez, Juana & Llano-Verduras, Carlos & Requena-Silvente, Francisco, 2011. "The factor content of regional bilateral trade: The role of technology and demand," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 157-172, April.

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