Domestic Production and Foreign Trade: The American Capital Position Re-Examined (1954)

by W Leontief
Venue:Proceedings of the American Economic Philosophical Society
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The Structure of Foreign Trade

by Elhanan Helpman , 1999
"... this paper what we know about foreign trade and in what ways our understanding has improved as a result of the last 20 years of research ..."
Abstract - Cited by 985 (16 self) - Add to MetaCart
this paper what we know about foreign trade and in what ways our understanding has improved as a result of the last 20 years of research

International Factor Price Differences: Leontief Was Right!" Manuscript

by Author(s) Daniel Trefler, Daniel Trefler , 1992
"... you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact inform ..."
Abstract - Cited by 211 (3 self) - Add to MetaCart
you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at
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Multicountry, Multifactor Tests of the Factor Abundance Theory

by Harry P. Bowen, Edward E. Learner, Leo Sveikauskas - American Economic Review , 1987
"... This paper has benefited from comments by participants in the ..."
Abstract - Cited by 161 (3 self) - Add to MetaCart
This paper has benefited from comments by participants in the

Factor Proportions and the Structure of Commodity Trade

by John Romalis , 2003
"... This paper derives and empirically examines how factor proportions determine the structure of commodity trade. It integrates a many-country version of the Heckscher-Ohlin model with a continuum of goods developed by Dornbusch-Fischer-Samuelson (1980) with the Krugman (1980) model of monopolistic com ..."
Abstract - Cited by 155 (5 self) - Add to MetaCart
This paper derives and empirically examines how factor proportions determine the structure of commodity trade. It integrates a many-country version of the Heckscher-Ohlin model with a continuum of goods developed by Dornbusch-Fischer-Samuelson (1980) with the Krugman (1980) model of monopolistic competition and transport costs. The commodity structure of production and bilateral trade is fully determined. Two main predictions emerge. There is a quasi-Heckscher-Ohlin prediction. Countries capture larger shares of world production and trade of commodities that more intensively use their abundant factors. There is a quasi-Rybczynski effect. Countries that rapidly accumulate a factor see their production and export structures systematically move towards industries that intensively use that factor. Both predictions receive support from the data. Factor proportions appear to be an important determinant of the structure of international trade.

An Account of Global Factor Trade

by R. Davis, David, E. Weinstein - National Bureau of Economic Research (Cambridge, MA) Working Paper No. 6785 , 1998
"... 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 existenc ..."
Abstract - Cited by 72 (2 self) - Add to MetaCart
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. (JEL F1, F11, D5) A central objective of international economic research has been to account for the factor content of trade. There are two principal rea-sons. The first is that economists want to trace the effects of international influences on rel-ative and absolute factor prices within a coun-try. The Heckscher-Ohlin model and its variants, with their emphasis on trade arising from differences in the availability of produc-

Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works

by R. Davis, David E. Weinstein, Scott C. Bradford - American Economic Review , 1997
"... The Heckscher-Ohlin-Vanek (HOV) model offactor service trade is a mainstay of international economics. Empirically, though, it is a flop. This warrants a new approach. We test the HOV model with international and Japanese regional data. The strict HOVmodelperforms poorly because it cannot explain th ..."
Abstract - Cited by 68 (7 self) - Add to MetaCart
The Heckscher-Ohlin-Vanek (HOV) model offactor service trade is a mainstay of international economics. Empirically, though, it is a flop. This warrants a new approach. We test the HOV model with international and Japanese regional data. The strict HOVmodelperforms poorly because it cannot explain the international location of production. Restricting the sample to Japanese regions provides no help, inter alia giving rise to what Daniel Trefler calls the "mystery of the missing trade. " However, when we relax the assumption of universal factor price equal-ization, results improve dramatically. In sum, the HOV model performs remark-ably well. (JEL F1, F14, R13) Starting with the classic "paradox " of Wassily W. Leontief (1953), and continuing through the influential work of Harry P.

Specialization and the Volume of Trade: Do the Data Obey the Laws?

by James Harrigan
"... The core subjects of trade theory are the pattern and volume of trade: which goods are traded by which countries, and how much of those goods are traded. The first part of this paper discusses evidence on comparative advantage, with an emphasis on carefully connecting theoretical models with data an ..."
Abstract - Cited by 61 (5 self) - Add to MetaCart
The core subjects of trade theory are the pattern and volume of trade: which goods are traded by which countries, and how much of those goods are traded. The first part of this paper discusses evidence on comparative advantage, with an emphasis on carefully connecting theoretical models with data analyses. The second part of the paper considers the theoretical foundations of the gravity model, and reviews the small number of studies that have tried to test, rather than simply use, the implications of gravity. Both parts of the paper yield the same conclusion: we are still in the very early stages of empirically understanding specialization and the volume of trade, but the work that has been done can serve as a starting point for further research.
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Economic Geography, Industry Location and Trade

by Marius Brülhart - The Evidence”, The World Economy , 1998
"... General-equilibrium models based on increasing returns, product differentiation and monopolistic competition have attained a prominent position in trade theory and, more recently, in economic geography. This paper surveys empirical studies on issues raised by the new wave of theoretical thinking. Th ..."
Abstract - Cited by 47 (1 self) - Add to MetaCart
General-equilibrium models based on increasing returns, product differentiation and monopolistic competition have attained a prominent position in trade theory and, more recently, in economic geography. This paper surveys empirical studies on issues raised by the new wave of theoretical thinking. There is a growing literature documenting spatial distributions of industries at country and regional levels, which focuses predominantly on the United States and the European Union. This body of work has produced robust findings as well as puzzles. Particular ambiguity appears in studies of location trends in the European Union. In addition, empirical researchers have devised methods to separate and test alternative theoretical paradigms. Analytical work confirms the complementarity and relevance of both neo-classical and “new ” models. Existing results, however, do not permit firm conclusions about the relative explanatory power of the main theoretical approaches for location patterns overall and in particular industries.

Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

by Kevin H. O’rourke , 2006
"... generous support. I am extremely grateful to Richard Sinnott for allowing me to draw on our joint work; and also wish to thank Kevin Denny, Chris Minns and participants at the Eli The factor proportions theory of trade developed by Eli Heckscher and Bertil Ohlin is so intuitively appealing that it r ..."
Abstract - Cited by 23 (2 self) - Add to MetaCart
generous support. I am extremely grateful to Richard Sinnott for allowing me to draw on our joint work; and also wish to thank Kevin Denny, Chris Minns and participants at the Eli The factor proportions theory of trade developed by Eli Heckscher and Bertil Ohlin is so intuitively appealing that it remains the bedrock of modern trade courses. Despite its popularity, however, doubts have persistently been raised about its empirical applicability, from the Leontief paradox (Leontief 1953) to the stylized facts (high levels of intra-industry trade; high levels of
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Relative Factor Abundance and Trade

by Peter Debaere - Journal of Political Economy , 2003
"... I develop a factor content of trade prediction for the Heckscher-Ohlin-Vanek model (HOV) that relates bilateral differences in country en-dowments to bilateral differences in factor contents. The results are striking. In comparisons of North-South factor contents or factor con-tents of countries wit ..."
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I develop a factor content of trade prediction for the Heckscher-Ohlin-Vanek model (HOV) that relates bilateral differences in country en-dowments to bilateral differences in factor contents. The results are striking. In comparisons of North-South factor contents or factor con-tents of countries with very different endowments (e.g., with very dif-ferent capital-labor ratios), there is clear support for an HOV sign prediction. Thus countries with dissimilar endowment ratios also have very different factor content of trade differences as predicted by the HOV model. I.