Testing the General Validity of the Heckscher-Ohlin Theorem
- (pp. 54-90)
Abstract
We exploit Japan's mid-nineteenth century transition from autarky to open trade to test Alan Deardorff's (1982) seminal and parsimonious autarky price formulation of the Heckscher-Ohlin theorem. Factor price data from Japan's late autarky period impose a refutable restriction on Japan's factor content of trade. Our data are constructed from many historical sources, including a major Japanese survey of agricultural techniques and a rich set of nineteenth century comparative cost studies. Evaluating Japan's factor content of trade during 1865-1876 under alternative theoretical assumptions about technology, we provide robust evidence in favor of the Heckscher-Ohlin hypothesis.Citation
Bernhofen, Daniel M., and John C. Brown. 2016. "Testing the General Validity of the Heckscher-Ohlin Theorem." American Economic Journal: Microeconomics, 8 (4): 54-90. DOI: 10.1257/mic.20130126Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- N55 Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: Asia including Middle East
- N75 Economic History: Transport, Trade, Energy, Technology, and Other Services: Asia including Middle East
- Q10 Agriculture: General
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