Comparative Advantage in International Trade: Theory
Based on the Heckscher-Ohlin-Vanek (H-O-V) theory, the paper develops theoretical models that lead to estimating cross-industry equations in a proper way, when allowing for departures from some of the strong assumptions of the H-O theory, such as perfect competition, equal factor unit requirements and factor prices across countries, and internationally immobile factors. Based on these theoretical models we try to address properly the issue of empirical estimation of the H-O-V equations, as well as to reformulate the rank hypotheses that allow for direct tests of the H-O-V theory when some of the assumptions of the original factor-proportions theory are relaxed.
|Date of creation:||Feb 1996|
|Date of revision:|
|Contact details of provider:|| Postal: Josefstädterstr. 39, A-1080 Vienna, Austria|
Phone: ++43 - (0)1 - 599 91 - 0
Fax: ++43 - (0)1 - 599 91 - 555
Web page: http://www.ihs.ac.at
More information through EDIRC
|Order Information:|| Postal: Institute for Advanced Studies - Library, Josefstädterstr. 39, A-1080 Vienna, Austria|
When requesting a correction, please mention this item's handle: RePEc:ihs:ihsesp:24. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Doris Szoncsitz)
If references are entirely missing, you can add them using this form.