Leontief was not right after all

Eric O’N. Fisher () and Kathryn G. Marshall ()
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Eric O’N. Fisher: California Polytechnic State University
Kathryn G. Marshall: University of California at Riverside

Journal of Productivity Analysis, 2016, vol. 46, issue 1, No 2, 15-24

Abstract: Abstract We use recent international data on cost shares by industry to conduct the first robust test of Leontief’s hypothesis of factor-specific productivity differences. We strongly reject this hypothesis. Hence tests of the Heckscher–Ohlin–Vanek paradigm cannot be based upon simple modifications that define factors in efficiency units. We also discuss a theory of productivity differences that describes the factor content of trade well.

Keywords: Factor-specific productivity differences; Leontief conjecture; Total factor productivity; Empirical studies of trade (search for similar items in EconPapers)
JEL-codes: D24 F14 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s11123-016-0466-2

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