Empirical foundations for the resurrection of Heckscher-Ohlin theory
We decompose the factor content of trade into Heckscher-Ohlin-Vanek trade and Ricardian trade. We measure factor content using only the United States' technology and also as Leontief advocated, using the local technology. In either case, differences in endowments are quite important in explaining the factor content of trade. If one uses raw estimated coefficients as a means of comparison, differences in endowments are ten times as important as differences in technology.
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- Eric O'N. Fisher, 2010. "Heckscher-Ohlin Theory when Countries have Different Technologies," CESifo Working Paper Series 3118, CESifo Group Munich.
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