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American Economic Review: Vol. 91 No. 5 (December 2001)
AER Volume. 91, Issue 5 | 
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An Account of Global Factor Trade
Article 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.91.5.1423
DOI: 10.1257/aer.91.5.1423
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.
Article Full-Text Access
Full-text Article
Authors
Davis, Donald R. (Columbia U and NBER)
Weinstein, David E. (Columbia U and NBER)
Weinstein, David E. (Columbia U and NBER)
JEL Classifications
F11: Neoclassical Models of Trade
