An Account of Global Factor Trade
Davis, Donald R., and
David E. Weinstein. 2001. "An Account of Global Factor Trade."
American Economic Review,
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
Davis, Donald R. (Columbia U and NBER)
Weinstein, David E. (Columbia U and NBER)
F11: Neoclassical Models of Trade