An Empirical Test of the Heckscher-Ohlin Theory of International Trade PDF Download

Author: Gary Leslie French
Publisher:
ISBN:
Category :
Languages : en
Pages : 282

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Author: Gary L. French
Publisher:
ISBN:
Category :
Languages : en
Pages : 141

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Author: Nicholas Perdikis
Publisher: Manchester University Press
ISBN: 9780719054099
Category : International trade
Languages : en
Pages : 264

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Book Description
Economists from Canada and Wales chronicle the theories of international trade that have arisen over the past few decades, document the empirical evidence that has been used to support or contest them, and explore the interplay between the two activities. They do not judge the empirical methods by today's ephemeral standards, but note that they were published in the most prestigious professional journals of their time. Their primary audience are practitioners, graduates, senior undergraduates in economics. Distributed in the US by St. Martin's Press. Annotation copyrighted by Book News, Inc., Portland, OR

Author: Robert E. Baldwin
Publisher: MIT Press
ISBN: 0262262053
Category : Business & Economics
Languages : en
Pages : 241

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A review of the theoretical twists and turns in the development of the Heckscher-Ohlin model and an empirical assessment of the basic model and three related theorems. No names are more closely associated with modern trade theory than Eli Heckscher and Bertil Ohlin. The basic Heckscher-Ohlin proposition, according to which a country exports factors in abundant supply and imports factors in scarce supply, is a key component of modern trade theory. In this book, Robert Baldwin traces the development of the HO model, describing the historical twists and turns that have led to the basic modern theoretical model in use today. Baldwin not only presents a clear and cohesive view of the model's evolution but also reviews the results of empirical tests its various versions. Baldwin, who published his first theoretical article on the HO model in 1948, first surveys the development of the HO model and then assesses empirical tests of its predictions. Most discussions of empirical work on HO models confine themselves to the basic theorem, but Baldwin devotes a chapter to empirical tests of three related propositions: the Stolper-Samuelson theorem; the Rybczynski theorem; and the factor price equalization theorem. He concludes that the formulation and testing of these later models have improved economists' understanding of the forces shaping international trade, but that many empirical trade economists (himself included) were so enamored of the elegant but highly unrealistic factor price equalization models developed from the insights of Heckscher and Ohlin that they have neglected investigation of other models without this relationship.

Author: Ms.Dalia Hakura
Publisher: International Monetary Fund
ISBN: 1451849133
Category : Business & Economics
Languages : en
Pages : 36

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While the Heckscher-Ohlin-Vanek (HOV) theorem has been a dominant paradigm in trade theory, the empirical evidence to support it has been weak. This paper develops a modified HOV model that allows technologies to differ across countries. The revised model significantly improves the theory’s accuracy in predicting trade flows in contrast to the traditional model. The paper also illustrates that, since countries have different technologies, measures of factor contents of trade in final goods using direct and domestically produced indirect input requirements are more accurate and yield more consistent predictions than do traditional measures.

Author: Daniel M. Bernhofen
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 752

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In this volume, the author has selected an impressive range of critical papers by leading academics which have contributed significantly to making international trade an empirical science.

Author: Donald Eugene Lewis
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 344

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Author: Edward E. Leamer
Publisher:
ISBN:
Category : International trade
Languages : en
Pages : 40

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This paper provides a critical look at recent empirical work in international trade theory. The paper addresses the issue of why empirical work in international trade has perhaps not been as influential as it could have been. The paper also provides several suggestions on directions for future empirical research in international trade.

Author: Antoni Estevadeordal
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 48

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Book Description
An empirical tradition in international trade seeks to establish whether the predictions of factor abundance theory match present-day data. In the analysis of goods trade and factor endowments, mildly encouraging results were found by Leamer et al. But ever since the appearance of Leontief's paradox, the measured factor content of trade has always been found to be far smaller than its predicted magnitude in the Heckscher-Ohlin-Vanek framework, the so-called 'missing trade' mystery. We wonder if this problem was there in the theory from the beginning. This seems like a fairer test of its creators' original enterprise. We apply contemporary tests to historical data on goods and factor trade from Ohlin's time. Our analysis is set in a very different context than contemporary studies -- an era with lower trade barriers, higher transport costs, a more skewed global distribution of the relevant factors (especially land), and comparably large productivity divergence. We find some support for the theory, but also encounter common problems. Our work thus complements the tests applied to today's data and informs our search for improved models of trade.

Author: Robert C. Feenstra
Publisher: MIT Press (MA)
ISBN: 9780262061087
Category : Business & Economics
Languages : en
Pages : 322

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A wide range of empirical studies is applied to various countries in this important collection. Bringing together the most recent work in econometrics applied to international trade, main sections of the book cover: cross-country analysis, which can be used to test assumptions or implications of trade models; industry studies, which are receiving renewed interest in recent literature on market structure and trade; and dual methods, which extend the estimation of production and cost functions to incorporate trade flows.Following the editor's introduction, relating the theory of international trade to empirical applications, are contributions by Richard A. Brecher and Ehsan U. Choudhri, The Factor Content of Consumption in Canada and the United States: A Two-Country Test of the Heckscher-Ohlin-Vanek Model. David Dollar, Edward N. Wolff, and William J. Baumol, The Factor-Price Equalization Model and Industry Labor Productivity: An Empirical Test Across Countries. Edward E. Learner, Cross Section Estimation of the Effects of Trade Barriers. Linda C. Hunter and James R. Markusen, Per-Capita Income as Determinant of Trade. Robert C. Feenstra, Gains from Trade in Differentiated Products: Japanese Compact Trucks. Avinash Dixit, Optimal Trade and Industrial Policies for the U.S. Autombile Industry. Richard E. Baldwin and Paul R. Krugman, Market Access and International Competition: A Simulation Study of 16K Random Access Memories. W. Erwin Diewert and Catherine J. Morrison, Export Supply and Import Demand Functions: A Production Theory Approach. Karyiu Wong, International Factor Mobility and the Volume of Trade: An Empirical Study. Bee Yan Aw and Mark J. Roberts, Price and Quality Level Comparison for U.S. Footware Imports: An Application of Multilateral Index Numbers. Alexandra Cas, W. Erwin Diewert, and Lawrence A. Ostensoe, Productivity Growth and Changes in the Terms of Trade in Canada.Robert C. Feenstra is an associate professor in the Department of Economics at the University of California, Davis.