An Account of Global Factor Trade
- (pp. 1423-1453)
AbstractA 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.
Citation2001. "An Account of Global Factor Trade." American Economic Review, 91(5): 1423-1453. DOI: 10.1257/aer.91.5.1423
- F11 Neoclassical Models of Trade