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Ricardian-Heckscher-Ohlin comparative advantage: Theory and evidence

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  • Morrow, Peter M.

Abstract

This paper derives and estimates a unified and tractable model of comparative advantage due to differences in both factor abundance and relative productivity differences across industries. It derives conditions under which ignoring one force for comparative advantage biases empirical tests of the other. I emphasize two empirical results: First, factor abundance- and relative productivity-based models each possesses explanatory power when nesting the other as an alternate hypothesis. Second, productivity differences across industries do not bias tests of the HO model in my sample. However, I find weak and mixed evidence that Heckscher-Ohlin forces can potentially bias tests of the Ricardian model.

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  • Morrow, Peter M., 2010. "Ricardian-Heckscher-Ohlin comparative advantage: Theory and evidence," Journal of International Economics, Elsevier, vol. 82(2), pages 137-151, November.
  • Handle: RePEc:eee:inecon:v:82:y:2010:i:2:p:137-151
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    Cited by:

    1. Do, Quy-Toan & Levchenko, Andrei A. & Raddatz, Claudio, 2016. "Comparative advantage, international trade, and fertility," Journal of Development Economics, Elsevier, vol. 119(C), pages 48-66.
    2. Rotunno, Lorenzo & Vezina, Pierre-Louis & Ito, Tadashi, 2015. "Heckscher-Ohlin : evidence from virtual trade in value added," IDE Discussion Papers 549, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Harms, Philipp & Schwab, Jakob, 2015. "Like it or not? How the Economic and Institutional Environment Shapes Individual Attitudes towards Multinational Enterprises," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113150, Verein für Socialpolitik / German Economic Association.
    4. Sato, Hitoshi, 2014. "Do electricity supply constraints matter for comparative advantage? : a neoclassical approach," IDE Discussion Papers 462, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Julie Regolo, 2013. "Export Diversification: How Much Does the Choice of the Trading Partner Matter?," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 13072, Institut d'Economie et Econométrie, Université de Genève.
    6. Amoroso, Nicolás & Chiquiar, Daniel & Ramos-Francia, Manuel, 2011. "Technology and endowments as determinants of comparative advantage: Evidence from Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 22(2), pages 164-196, August.
    7. William R. Kerr, 2013. "Heterogeneous Technology Diffusion and Ricardian Trade Patterns," NBER Working Papers 19657, National Bureau of Economic Research, Inc.
    8. Regolo, Julie, 2013. "Export diversification: How much does the choice of the trading partner matter?," Journal of International Economics, Elsevier, vol. 91(2), pages 329-342.
    9. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    10. Asier Minondo & Francisco Requena, 2012. "Complexity as a source of comparative advantage," Working Papers 1214, Department of Applied Economics II, Universidad de Valencia.
    11. Kanieski da Silva, Bruno & Boys, Kathryn A., 2016. "Forest Stewardship Standards: Voluntary Governance As A Trade Facilitation Strategy?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236191, Agricultural and Applied Economics Association.
    12. Schwab, Jakob & Ortseifer, Christina, 2015. "Reaping the Gains: Specialization and Capital Flows," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113194, Verein für Socialpolitik / German Economic Association.
    13. repec:bla:reviec:v:25:y:2017:i:3:p:427-446 is not listed on IDEAS
    14. Kaplan, Lennart C. & Kohl, Tristan & Martínez-Zarzoso, Inmaculada, 2016. "The effects of the CEECS's accession on sectoral trade: A value added perspective," Center for European, Governance and Economic Development Research Discussion Papers 272, University of Goettingen, Department of Economics.

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