Factor Prices, Factor Proportions, and Factor Endowments in the Pacific Northwest: A Regional Test of the Heckscher-Ohlin Theorem for the n-factor Case

Mehrdad Madresehee

The Annals of Regional Science, 1993, vol. 27, issue 2, 143-52

Abstract: A generalized version of the Heckscher-Ohlin model of trade has been developed by A. V. Deardorff for the "l"-factor, "m"-commodity, and "n"-country case. To test the validity of the Deardorff's model, first the factor content and commodity composition of trade between the Pacific Northwest (PNW) and the rest of the United States reestimated. These estimated values are then employed in a model to examine the degree of importance of relatively cheap energy and capital prices and relatively expensive wage rates in determining the level and composition of the PNW's trade with the rest of the United States. This study finds that the Pacific Northwest has a comparative advantage in the production of those goods which intensively use energy and capital and sparingly use labor in their production processes. This finding is, of course, in accord with the prediction of Deardorff's model.

Date: 1993
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:anresc:v:27:y:1993:i:2:p:143-52

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().