American Economic Review Vol. 77 No. 5 1987
Multicountry, Multifactor Tests of the Factor Abundance Theory
Abstract
The Heckscher-Ohlin-Vanek model predicts relationships among industry input requirements, country resource supplies, and international trade in commodities. These relationships are tested using data on twelve resources, and the trade of twenty-seven countries in 1967. The Heckscher-Ohlin propositions that trade reveals gross and relative factor abundance are not supported by these data. The Heckscher-Ohlin-Vanek equations are also rejected in favor of weaker models that allow technological differences and measurement errors.
- Volume
- 77
- Issue
- 5
- Pages
- 791-809
- Sources
- bibtex:phds-export.bib