Factor price equality across countries is an important implication of the Heckscher-Ohlin-Samuelson model of international trade. Although an influential theoretical result, the model has received surprisingly little empirical support. Burgman and Geppert (1993) argue that this might be due to the neglect of the nonstationarity property of the time series under consideration. Using a cointegrat...

We study the production side of the Heckscher–Ohlin model empirically. The evidence we present suggests that the endowments of countries around the world are too dissimilar for all countries to be able to produce the same set of goods. In contrast, the endowments of the rich OECD countries are sufficiently similar, so that these countries do not have to specialize in different subsets of goods....

A BSTRACT According to the Heckscher-Ohlin-Vanek theorem, the net exports of a region are determined by relative abundance of the immobile factors of production. Empirical tests of this theory, usually at a high level of aggregation, have frequently not supported it. We find, instead, that data on interstate trade in wood products within the United States are in strong agreement with the theore...

Previous research has uncovered precious little support for Heckscher-Ohlin trade theory. This paper demonstrates that those efforts focus on an overly restrictive version of the model. Indeed, strong evidence that output is a function of endowments can be found if we recognize that countries with sufficiently disparate endowments specialize in different subsets of goods. This paper develops a ...

Do rich and poor countries export the same goods to the US? Using highly disaggregate trade flow data – which breaks US imports into thousands rather than tens of goods – this paper documents two significant trends. First, the number of US imports originating in either rich or poor countries exclusively has fallen dramatically as the world has globalized, from 50% in 1972 to 25% in 1994. This g...

There are two principal theories of why countries or regions trade: comparative advantage and increasing returns to scale. Yet there is virtually no empirical work that assesses the relative importance of these two theories in accounting for production structure and trade. We use a framework that nests an increasing returns model of economic geography featuring “home market effects” with that o...

Economic globalization causes an increasing international fragmentation (disintegration) of value-added-chains, whereby firms outsource components of production to foreign markets. There is a high level of concern about unwelcome distributional effects. This paper provides a theoretical treatment of this issue within a general Heckscher-Ohlin framework, allowing for an arbitrary number of goods...

â â â â  â  abstract â  most debates about the role of tariff cuts on the level of employment and rate of wages in labor market have come out of well-known hecscher – ohlin and stopler – samuelson (hos) theorems. considering the fact that we have divided the workforce into skilled and unskilled labors the present paper assesses the impacts of tariff cuts on labor market indicators in iran. ...

We assess the comparative advantage and protection of China’s major agricultural crops using a modified Policy Analysis Matrix (PAM) and 1996 to 1998 data. We consider the following commodities: early indica rice, late indica rice, japonica rice, south wheat, north wheat, south corn, north corn, sorghum, soybean, rapeseed, cotton, tobacco, sugarcane, and a subset of fruits and vegetables. Consi...

This paper makes use of an agent-based framework to extend traditional models of comparative advantage in international trade, illustrating several cases that make theoretical room for industrial policy and the regulation of trade. Using an agent based implementation of the Hecksher-Ohlin trade model; the paper confirms Samuelson's 2004 result demonstrating that the principle of comparative adv...