IDEAS home Printed from https://ideas.repec.org/a/sae/inrsre/v31y2008i2p159-184.html
   My bibliography  Save this article

Testing Heckscher— Ohlin—Vanek Model Using Spanish Regional Data

Author

Listed:
  • Francisco Requena

    (Dpto de Economía Aplicada , Facultad de Ciencias Económicas, Universidad de Valencia, Valencia, Spain, francisco.requena@uv.es)

  • Andrés Artal

    (Dpto de Economía, Facultad de Ciencias Económicas, Universidad Politécnica de Cartagena, Cartagena, Spain, andres.artal@upct.es)

  • Juana Castillo

    (Dpto de Economía Aplicada , Facultad de Ciencias Económicas, Universidad de Valencia, Valencia, Spain, Juana.Castillo@uv.es)

Abstract

The authors conduct an empirical study of the Heckscher—Ohlin—Vanek (HOV) model of trade using regional data rather than country data. Findings for Spanish regions suggest that relaxing the assumption of world factor price equalization alone is not enough to improve the performance of the HOV model. The supposition of world identical and homothetic preferences must also be relaxed. The authors also test whether Spanish regions share the same production techniques. Allowing for productivity-adjusted factor price equalization across regions or region-specific input—output matrices contributes very little toward improving the HOV model's predictive power, suggesting that the state of technology and choice of techniques is similar across Spanish regions.

Suggested Citation

  • Francisco Requena & Andrés Artal & Juana Castillo, 2008. "Testing Heckscher— Ohlin—Vanek Model Using Spanish Regional Data," International Regional Science Review, , vol. 31(2), pages 159-184, April.
  • Handle: RePEc:sae:inrsre:v:31:y:2008:i:2:p:159-184
    DOI: 10.1177/0160017607312817
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0160017607312817
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0160017607312817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Davis, Donald R. & David E. Weinstein & Scott C. Bradford & Kazushige Shimpo, 1997. "Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works," American Economic Review, American Economic Association, vol. 87(3), pages 421-446, June.
    2. Adrian Wood, 1994. "Give Heckscher and Ohlin a chance!," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 20-49, March.
    3. Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December.
    4. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    5. John R. Moroney & James M. Walker, 1966. "A Regional Test of the Heckscher-Ohlin Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 74(6), pages 573-573.
    6. Antoni Estevadeordal & Alan M. Taylor, 2002. "A Century of Missing Trade?," American Economic Review, American Economic Association, vol. 92(1), pages 383-393, March.
    7. Leamer, Edward E, 1980. "The Leontief Paradox, Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 495-503, June.
    8. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    9. Debaere, Peter, 2004. "Does lumpiness matter in an open economy?: Studying international economics with regional data," Journal of International Economics, Elsevier, vol. 64(2), pages 485-501, December.
    10. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, vol. 82(2), pages 195-207, November.
    11. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-987, December.
    12. Paolo Mauro & Antonio Spilimbergo, 1999. "How Do the Skilled and the Unskilled Respond to Regional Shocks?: The Case of Spain," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 1-1.
    13. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
    14. Hakura, Dalia S., 2001. "Why does HOV fail?: The role of technological differences within the EC," Journal of International Economics, Elsevier, vol. 54(2), pages 361-382, August.
    15. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    16. Xiang, Chong, 2001. "The sufficiency of the 'lens condition' for factor price equalization in the case of two factors," Journal of International Economics, Elsevier, vol. 53(2), pages 463-474, April.
    17. Antoinette James & Bruce Elmslie, 1996. "Testing Heckscher-Ohlin-Vanek in the G-7," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 139-159, March.
    18. Smith, Pamela J, 1999. "Do Geographic Scale Economies Explain Disturbances to Heckscher-Ohlin Trade?," Review of International Economics, Wiley Blackwell, vol. 7(1), pages 20-36, February.
    19. 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.
    20. Maskus, Keith E., 1985. "A test of the Heckscher-Ohlin-Vanek theorem: The Leontief commonplace," Journal of International Economics, Elsevier, vol. 19(3-4), pages 201-212, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2017. "The granular and fundamental components of export specialization," Working Papers 1704, Department of Applied Economics II, Universidad de Valencia.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Bernhofen, 2010. "The Empirics of General Equilibrium Tade Theory: What Have we Learned?," CESifo Working Paper Series 3242, CESifo.
    2. Andrés Artal & Juana Castillo & Francisco Requena, 2006. "Contrastación empírica del modelo de dotaciones factoriales para el comercio interregional de España," Investigaciones Economicas, Fundación SEPI, vol. 30(3), pages 539-576, September.
    3. Assaf Zimring, 2019. "Testing the Heckscher–Ohlin–Vanek theory with a natural experiment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(1), pages 58-92, February.
    4. Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December.
    5. Yun‐kwong Kwok, 2006. "Global factor trade with differentiated factor prices and factor intensities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 758-780, August.
    6. Hausmann, Ricardo & Stock, Daniel P. & Yıldırım, Muhammed A., 2022. "Implied comparative advantage," Research Policy, Elsevier, vol. 51(8).
    7. 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.
    8. Keith E. Maskus & Shuichiro Nishioka, 2009. "Development-related biases in factor productivities and the HOV model of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 519-553, May.
    9. Kagawa, Shigemi, 2008. "How does Japanese compliance with the Kyoto Protocol affect environmental productivity in China and Japan?," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 173-188, June.
    10. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, vol. 82(2), pages 195-207, November.
    11. Donald R. Davis & David E. Weinstein, 2001. "The Factor Content of Trade," NBER Working Papers 8637, National Bureau of Economic Research, Inc.
    12. Jäkel, Ina C. & Smolka, Marcel, 2017. "Trade policy preferences and factor abundance," Journal of International Economics, Elsevier, vol. 106(C), pages 1-19.
    13. Demmou Lilas, 2009. "Déterminants et nature des spécialisations Nord-Sud : quelques enseignements tirés de la littérature empirique," Revue d'économie politique, Dalloz, vol. 119(1), pages 71-94.
    14. Nishioka, Shuichiro, 2012. "International differences in production techniques: Implications for the factor content of trade," Journal of International Economics, Elsevier, vol. 87(1), pages 98-104.
    15. Muhammed A. Yildirim, 2014. "Implied Comparative Advantage," CID Working Papers 276, Center for International Development at Harvard University.
    16. Brakman, Steven & van Marrewijk, Charles, 2013. "Lumpy countries, urbanization, and trade," Journal of International Economics, Elsevier, vol. 89(1), pages 252-261.
    17. Donald R. Davis & David E. Weinstein, 2001. "Do Factor Endowments Matter for North-North Trade?," NBER Working Papers 8516, National Bureau of Economic Research, Inc.
    18. James Cassing & Shuichiro Nishioka, 2015. "Per Capita Income and the Mystery of Missing Trade," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 606-619, August.
    19. Antoni Estevadeordal & Alan M. Taylor, 2002. "Testing Trade Theory in Ohlin's Time," NBER Working Papers 8842, National Bureau of Economic Research, Inc.
    20. Nishioka, Shuichiro, 2013. "R&D, trade in intermediate inputs, and the comparative advantage of advanced countries," Journal of the Japanese and International Economies, Elsevier, vol. 30(C), pages 96-110.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inrsre:v:31:y:2008:i:2:p:159-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.