Using International and Japanese Regional Data to Determine When the Factor Abundance Theory of Trade Works

Donald R. Davis, David E. Weinstein, Scott C. Bradford, Kazushige Shimpo

研究成果: Article査読

106 被引用数 (Scopus)

抄録

The Heckscher-Ohlin-Vanek (HOV) model of factor service trade is a mainstay of international economics. Empirically, though, it is a flop. This warrants a new approach. We test the HOV model with international and Japanese regional data. The strict HOV model performs poorly because it cannot explain the international location of production. Restricting the sample to Japanese regions provides no help, inter alia giving rise to what Daniel Trefler calls the "mystery of the missing trade." However, when we relax the assumption of universal factor price equalization, results improve dramatically. In sum, the HOV model performs remarkably well.

本文言語English
ページ(範囲)421-446
ページ数26
ジャーナルAmerican Economic Review
87
3
出版ステータスPublished - 1997 6 1

ASJC Scopus subject areas

  • 経済学、計量経済学

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