Multicountry, Multifactor Tests of the Factor Abundance Theory

Harry Bowen (), Edward Leamer and Leo Sveikauskas

American Economic Review, 1987, vol. 77, issue 5, 791-809

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.

Date: 1987
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