Robert E. Baldwin
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262026567
- eISBN:
- 9780262267656
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026567.003.0043
- Subject:
- Economics and Finance, Econometrics
This chapter examines test results from the Heckscher–Ohlin (HO) proposition in a multi-factor, multi-country framework that began with Maskus (1985) and Bowen, Leamer, and Sveikauskas (1987) and ...
More
This chapter examines test results from the Heckscher–Ohlin (HO) proposition in a multi-factor, multi-country framework that began with Maskus (1985) and Bowen, Leamer, and Sveikauskas (1987) and have continued to be carried out by Trefler (1993, 1995), Davis and Weinstein (2001), and others. It also considers empirical tests of the basic Heckscher–Ohlin–Vanek (HOV) relationship which states that the amount of a particular factor of production embodied in a country’s net trade of goods and services equals its endowment of this factor minus its share of world consumption times the world endowment of this factor. Among other topics covered are country-pair tests of the HO proposition and empirical investigations into the importance of intra-industry trade and increasing returns. The test of Helpman’s (1984) non-factor price equalization model undertaken by Choi and Krishna (2004) is also reviewed.Less
This chapter examines test results from the Heckscher–Ohlin (HO) proposition in a multi-factor, multi-country framework that began with Maskus (1985) and Bowen, Leamer, and Sveikauskas (1987) and have continued to be carried out by Trefler (1993, 1995), Davis and Weinstein (2001), and others. It also considers empirical tests of the basic Heckscher–Ohlin–Vanek (HOV) relationship which states that the amount of a particular factor of production embodied in a country’s net trade of goods and services equals its endowment of this factor minus its share of world consumption times the world endowment of this factor. Among other topics covered are country-pair tests of the HO proposition and empirical investigations into the importance of intra-industry trade and increasing returns. The test of Helpman’s (1984) non-factor price equalization model undertaken by Choi and Krishna (2004) is also reviewed.
Robert E. Baldwin
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262026567
- eISBN:
- 9780262267656
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026567.003.0012
- Subject:
- Economics and Finance, Econometrics
This chapter surveys the development of the Heckscher–Ohlin (HO) trade theory. It discusses trade theory in the 1930s; the Heckscher–Ohlin–Samuelson (HOS) model; the Heckscher–Ohlin–Vanek (HOV) ...
More
This chapter surveys the development of the Heckscher–Ohlin (HO) trade theory. It discusses trade theory in the 1930s; the Heckscher–Ohlin–Samuelson (HOS) model; the Heckscher–Ohlin–Vanek (HOV) model; the “new” trade theory and differentiated products; the Helpman non-factor price equalization model; and the Ohlin’s views on modern Heckscher–Ohlin trade models.Less
This chapter surveys the development of the Heckscher–Ohlin (HO) trade theory. It discusses trade theory in the 1930s; the Heckscher–Ohlin–Samuelson (HOS) model; the Heckscher–Ohlin–Vanek (HOV) model; the “new” trade theory and differentiated products; the Helpman non-factor price equalization model; and the Ohlin’s views on modern Heckscher–Ohlin trade models.
Robert E. Baldwin
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262026567
- eISBN:
- 9780262267656
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026567.003.0071
- Subject:
- Economics and Finance, Econometrics
This chapter summarizes what has been learned from the various empirical tests and discusses lines of research topics that warrant greater attention in the future. Specifically it discusses the ...
More
This chapter summarizes what has been learned from the various empirical tests and discusses lines of research topics that warrant greater attention in the future. Specifically it discusses the modification of the Heckscher–Ohlin model and the further broadening of the analytical framework.Less
This chapter summarizes what has been learned from the various empirical tests and discusses lines of research topics that warrant greater attention in the future. Specifically it discusses the modification of the Heckscher–Ohlin model and the further broadening of the analytical framework.
Robert E. Baldwin
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262026567
- eISBN:
- 9780262267656
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262026567.003.0056
- Subject:
- Economics and Finance, Econometrics
This chapter reviews selected empirical investigations of the other basic propositions of the Heckscher–Ohlin (HO) model. These are the relationship between relative changes in product prices and ...
More
This chapter reviews selected empirical investigations of the other basic propositions of the Heckscher–Ohlin (HO) model. These are the relationship between relative changes in product prices and relative changes in factor prices (Stolper–Samuelson effects); the relationship between changes in relative factor supplies and changes in the composition of output (Rybczynski effects), and the relationship between trade and the equalization of factor prices (factor price equalization effects).Less
This chapter reviews selected empirical investigations of the other basic propositions of the Heckscher–Ohlin (HO) model. These are the relationship between relative changes in product prices and relative changes in factor prices (Stolper–Samuelson effects); the relationship between changes in relative factor supplies and changes in the composition of output (Rybczynski effects), and the relationship between trade and the equalization of factor prices (factor price equalization effects).
