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The Validity of Bilateral Heckscher-Ohlin: Some Further Empirical Evidence

Author

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  • Tsounis, Nicholas

    () (Department of International Trade, Technological Institute of Western Macedonia)

Abstract

In this article the Heckscher-Ohlin (H-O) theorem in its both the ‘commodity’ and the ‘factor content’ version is examined under the existence of non-factor price equalisation conditions in the bilateral trade between two countries, in a model with three countries and many commodities. Further, the H-O theory is examined in the trade between Greece and the European Union (E.U.) countries. It is found that the differences in the pattern of specialisation in the trade between Greece and each of the E.U. countries is explained by differences in the relative factor endowments. The tests suggest that the H-O model is valid in the trade between Greece and the E.U. countries.

Suggested Citation

  • Tsounis, Nicholas, 2003. "The Validity of Bilateral Heckscher-Ohlin: Some Further Empirical Evidence," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 56(1), pages 119-136.
  • Handle: RePEc:ris:ecoint:0170
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    Cited by:

    1. George Agiomirgianakis & Dimitrios Serenis & Nicholas Tsounis, 2017. "A distance learning university and its economic impact in a country’s peripheries: the case of Hellenic Open University," Operational Research, Springer, vol. 17(1), pages 165-186, April.

    More about this item

    Keywords

    Bilateral Heckscher-Ohlin; Greece; EU;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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