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 among input requirements, resource supplies, and trade are also rejected in favor of weaker models that allow technological differences and measurement errors.
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