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Testing Heckscher— Ohlin—Vanek Model Using Spanish Regional Data

Author

Listed:
  • Francisco Requena

    (Dpto de Economía Aplicada , Facultad de Ciencias Económicas, Universidad de Valencia, Valencia, Spain, francisco.requena@uv.es)

  • Andrés Artal

    (Dpto de Economía, Facultad de Ciencias Económicas, Universidad Politécnica de Cartagena, Cartagena, Spain, andres.artal@upct.es)

  • Juana Castillo

    (Dpto de Economía Aplicada , Facultad de Ciencias Económicas, Universidad de Valencia, Valencia, Spain, Juana.Castillo@uv.es)

Abstract

The authors conduct an empirical study of the Heckscher—Ohlin—Vanek (HOV) model of trade using regional data rather than country data. Findings for Spanish regions suggest that relaxing the assumption of world factor price equalization alone is not enough to improve the performance of the HOV model. The supposition of world identical and homothetic preferences must also be relaxed. The authors also test whether Spanish regions share the same production techniques. Allowing for productivity-adjusted factor price equalization across regions or region-specific input—output matrices contributes very little toward improving the HOV model's predictive power, suggesting that the state of technology and choice of techniques is similar across Spanish regions.

Suggested Citation

  • Francisco Requena & Andrés Artal & Juana Castillo, 2008. "Testing Heckscher— Ohlin—Vanek Model Using Spanish Regional Data," International Regional Science Review, , vol. 31(2), pages 159-184, April.
    • Handle: RePEc:sae:inrsre:v:31:y:2008:i:2:p:159-184
    DOI: 10.1177/0160017607312817
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    References listed on IDEAS

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    Cited by:

    1. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2017. "The granular and fundamental components of export specialization," Working Papers 1704, Department of Applied Economics II, Universidad de Valencia.

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