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Some Empirical Support for the Heckscher-Ohlin Model of Production

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Abstract

This paper develops empirically feasible tests of the production side of the Heckscher-Ohlin model of international trade in the case where factor prices are not equal between countries. To allow for factor-price differences across industries within each country, three variants of the model are considered. Tests of these variants are implemented.for Canada and the United States. Results are favorable to all three variants, especially the variant that allows imperfect factor mobility within each country. Thus, the paper finds some support for the Heckscher-Ohlin model of production.
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  • Richard Brecher & Eshan Choudhri, 1992. "Some Empirical Support for the Heckscher-Ohlin Model of Production," Carleton Economic Papers 92-08, Carleton University, Department of Economics.
  • Handle: RePEc:car:carecp:92-08
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    Cited by:

    1. Daniel Bernhofen, 2009. "Predicting the pattern of international trade in the neoclassical model: a synthesis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(1), pages 5-21, October.
    2. Harrigan, James, 1997. "Technology, Factor Supplies, and International Specialization: Estimating the Neoclassical Model," American Economic Review, American Economic Association, vol. 87(4), pages 475-494, September.
    3. Daniel M. Bernhofen, "undated". "The Empirics of General Equilibrium Trade Theory: What Have We Learned?," Discussion Papers 10/24, University of Nottingham, GEP.
    4. Donald R. Davis & David E. Weinstein, 1996. "Does Economic Geography Matter for International Specialization?," NBER Working Papers 5706, National Bureau of Economic Research, Inc.
    5. Keith E. Maskus & Allan Webster, 1995. "Factor Specialization in U.S. and U.K. Trade: Simple Departures from the Factor-content Theory," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 419-439, September.
    6. Uday Rajan, 1995. "Refutable Implications of the Heckscher-Ohlin Model," International Trade 9502001, University Library of Munich, Germany.
    7. Peter K. Schott, 2003. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," American Economic Review, American Economic Association, vol. 93(3), pages 686-708, June.
    8. Jim Malley & Thomas Moutos, 1998. "Real Wages and the Structure of Imports: Theory and Evidence," Working Papers 9821, Business School - Economics, University of Glasgow.
    9. Colin Carter & Xianghong Li, 2004. "Changing trade patterns in major OECD countries," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1501-1511.
    10. Harrigan, James, 1995. "Factor endowments and the international location of production: Econometric evidence for the OECD, 1970-1985," Journal of International Economics, Elsevier, vol. 39(1-2), pages 123-141, August.

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    Keywords

    economic theory ; economic models ; production;

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