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...

The goal of this research is to test the Heckscher-Ohlin’ theorem of comparative advantages on the sample of the Republic of Croatia and other European Union member countries. Heckscher-Ohlin theorem of comparative advantages can largely explain international trade in cases where the sample of countries is heterogeneous, in terms of the achieved level of development and the production factors a...

Innovative production is driven by creative destruction. High turnover requires frequent reallocation of capital. Banks play a major role in capital withdrawing funds from nonviable firms and redirecting credit to scale up the most productive firms. Structural parameters banking system thus affect country’s comparative advantage innovative sectors. Using Heckscher–Ohlin model with banks, this p...