Comparative advantage in international trade: Theory

Arbeitspapier

Based on the Heckscher-Ohlin-Vanek (H-O-V) theory, the paper develops theoretical models that lead to estimating cross-industry equations in a proper way, when allowing for departures from some of the strong assumptions of the H-O theory, such as perfect competition, equal factor unit requirements and factor prices across countries, and internationally immobile factors. Based on these theoretical models we try to address properly the issue of empirical estimation of the H-O-V equations, as well as to reformulate the rank hypotheses that allow for direct tests of the H-O-V theory when some of the assumptions of the original factor-proportions theory are relaxed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Reihe Ökonomie / Economics Series ; No. 24

Classification and Topics

• Classification: Wirtschaft ; Neoclassical Models of Trade ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Empirical Studies of Trade
• Subject: international trade ; comparative advantage ; increasing returns to scale ; product differentiation ; factor-content ; Außenwirtschaftstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ursulescu, Mirela
• Event: Veröffentlichung
• (who): Institute for Advanced Studies (IHS)
• (where): Vienna
• (when): 1996

Further information

• Handle: http://hdl.handle.net/10419/68640
• Last update: 10.03.2025, 11:42 AM CET