An Account of Global Factor Trade
American Economic Review
vol. 91,
no. 5, December 2001
(pp. 1423-1453)
Abstract
A half century of empirical work attempting to predict the factor content of trade in goods has failed to bring theory and data into congruence. Our study shows how the Heckscher-Ohlin-Vanek theory, when modified to permit technical differences, a breakdown in factor price equalization, the existence of nontraded goods, and costs of trade, is consistent with data from ten OECD countries and a rest-of-world aggregate.Citation
Davis, Donald, R., and David E. Weinstein. 2001. "An Account of Global Factor Trade." American Economic Review, 91 (5): 1423-1453. DOI: 10.1257/aer.91.5.1423JEL Classification
- F11 Neoclassical Models of Trade