Factor Intensity Reversals Redux

Kozo Kiyota and Yoshinori Kurokawa

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: Little evidence for factor intensity reversals (i.e., reversals of capital/labor ratios) among countries or regions has been found in previous empirical studies. This supports Samuelson's (1951) view that factor intensity reversals are of theoretical interest rather than empirical importance. Using newly developed region-level data, however, we argue that the abandonment of factor intensity reversals in the empirical analysis has been premature. Specifically, we find that the degree of the factor intensity reversals is higher than that found in previous studies on average. Moreover, the degree of the factor intensity reversals has increased over the last two decades. Finally, the degree of the factor intensity reversals is higher when we use disaggregated industry-level data, weakening a possible criticism that several factor intensity reversals may be a result of the aggregation of industries.

Pages: 24 pages
Date: 2017-03
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/17e021.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:17021

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().