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Faktorgehalt und internationaler Handel
[Factor content and international trade]


  • Gilroy, Bernard Michael


The empirical relevance of the Heckscher-Ohlin "factor abundance" theorem of international trade has been the subject of many studies, beginning with the pioneering one of Leontief (1953). Accordingly, relative factor endowments should affect observed trade patterns. The principle purpose of this paper is to demonstrate recent theoretical advances applying the factor content of trade to analyze existing relationships between factor prices and factor content as a means of testing the theorem empirically. At the empirical level, however, it is found that the literature on this important subject still offers no generally accepted answer. This may not be as surprising as first glance suggests, given the rising importance of alternative determinants of trade flows other than factor abundancyl.

Suggested Citation

  • Gilroy, Bernard Michael, 1991. "Faktorgehalt und internationaler Handel
    [Factor content and international trade]
    ," MPRA Paper 21037, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21037

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    References listed on IDEAS

    1. Stern, Robert M, 1976. "Some Evidence on the Factor Content of West Germany's Foreign Trade," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 131-141, February.
    2. Ethier, Wilfred J., 1982. "The general role of factor intensity in the theorems of international trade," Economics Letters, Elsevier, vol. 10(3-4), pages 337-342.
    3. Svensson, Lars E.O., 1984. "Factor trade and goods trade," Journal of International Economics, Elsevier, vol. 16(3-4), pages 365-378, May.
    4. Ken‐ichi Inada, 1967. "A Note on the Heckscher‐Ohlin Theorem," The Economic Record, The Economic Society of Australia, vol. 43(1), pages 88-96, March.
    5. Dixit, Avinash & Woodland, Alan, 1982. "The relationship between factor endowments and commodity trade," Journal of International Economics, Elsevier, vol. 13(3-4), pages 201-214, November.
    6. James R. Williams, 1970. "The Resource Content in International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 3(1), pages 111-122, February.
    7. J. Peter Neary & Albert G. Schweinberger, 1986. "Factor Content Functions and the Theory of International Trade," Review of Economic Studies, Oxford University Press, vol. 53(3), pages 421-432.
    8. Gilroy, Bernard Michael, 1989. " Intra-firm Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 325-343.
    9. Teitel, Simon, 1976. "Labor homogeneity, skill intensity and factor reversals - an international comparison," Journal of Development Economics, Elsevier, vol. 3(4), pages 355-366, December.
    10. Yeung, Patrick & Tsang, Herbert, 1972. "Generalized Production Function and Factor-Intensity Crossovers: An Empirical Analysis," The Economic Record, The Economic Society of Australia, vol. 48(123), pages 387-399, September.
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    More about this item


    international trade; factor content; Heckscher-Ohlin theorem;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F1 - International Economics - - Trade


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