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Global factor trade with differentiated factor prices and factor intensities

Yun-Kwong Kwok

No 331173, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The assumption of internationally identical factor intensity techniques may be one of the major causes of the HOV model's poor performance. To relax this assumption, detailed input-output data are required to compute the factor intensity techniques used in different countries; however, these data are not readily accessible for many countries. This paper takes an alternative approach by introducing an inferring method that can infer the factor intensity techniques of different countries based on our knowledge about the US factor intensity techniques and the international factor price differences. The original HOV model is then modified accordingly.

Keywords: International Relations/Trade; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 21
Date: 2004
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