American Economic Review Vol. 91 No. 5 2001
An Account of Global Factor Trade
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.
- DOI
- 10.1257/aer.91.5.1423
- Volume
- 91
- Issue
- 5
- Pages
- 1423-1453
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref