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Multicountry, Multifactor Tests of the Factor Abundance Theory

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  • Bowen, Harry P
  • Leamer, Edward E
  • Sveikauskas, Leo

Abstract

The Heckscher-Ohlin-Vanek model predicts relationships among industry input requirements, country resource supplies, and international trade in commodities. These relationships are tested using data on twelve resources, and the trade of twenty-seven countries in 1967. The Heckscher-Ohlin propositions that trade reveals gross and relative factor abundance are not supported by these data. The Heckscher-Ohlin-Vanek equations among input requirements, resource supplies, and trade are also rejected in favor of weaker models that allow technological differences and measurement errors. Copyright 1987 by American Economic Association.

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  • Bowen, Harry P & Leamer, Edward E & Sveikauskas, Leo, 1987. "Multicountry, Multifactor Tests of the Factor Abundance Theory," American Economic Review, American Economic Association, vol. 77(5), pages 791-809, December.
    • Handle: RePEc:aea:aecrev:v:77:y:1987:i:5:p:791-809
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    1. Harkness, Jon P, 1978. "Factor Abundance and Comparative Advantage," American Economic Review, American Economic Association, vol. 68(5), pages 784-800, December.
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    4. Baldwin, Robert E, 1971. "Determinants of the Commodity Structure of U.S. Trade," American Economic Review, American Economic Association, vol. 61(1), pages 126-146, March.
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    6. Sveikauskas, Leo A, 1983. "Science and Technology in United States Foreign Trade," Economic Journal, Royal Economic Society, vol. 93(371), pages 542-554, September.
    7. Horiba, Yutaka, 1979. "Testing the Demand Side of Comparative Advantage Models," American Economic Review, American Economic Association, vol. 69(4), pages 650-661, September.
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