The Heckscher-Ohlin Theorem Of International Trade Theory: New Empirical Tests For Brazil

Heckscher–ohlin Trade Theory

Eli Heckscher (1919) and Bertil Ohlin (1933) laid the groundwork for substantial developments in the theory of international trade by focusing on the relationships between the composition of countries’ factor endowments and commodity trade patterns as well as the consequences of free trade for the functional distribution of income within countries. From the outset general equilibrium forms of a...

Empirical foundations for the resurrection of Heckscher–Ohlin theory

We decompose the factor content of trade into Heckscher–Ohlin–Vanek trade and Ricardian trade. We measure factor content using only the United States' technology and also as Leontief advocated, using the local technology. In either case, differences in endowments are quite important in explaining the factor content of trade. If one uses raw estimated coefficients as a means of comparison, diffe...

Empirical evidence on Heckscher-Ohlin trade theorem: the case of international trade between Croatia and the rest of the European Union member states*

The goal of this research is to test the Heckscher-Ohlin’ theorem of comparative advantages on the sample of the Republic of Croatia and other European Union member countries. Heckscher-Ohlin theorem of comparative advantages can largely explain international trade in cases where the sample of countries is heterogeneous, in terms of the achieved level of development and the production factors a...

The Heckscher-Ohlin Model and the Network Structure of International Trade

This paper estimates for 28 product groups a characteristic parameter that reflects the topological structure of its trading network. Using these estimates, it then describes how the structure of international trade has evolved during during the 19802000 period. Thereafter, it demonstrates the importance of networks in international trade by explicitly accounting for their scaling properties wh...

Consolidation, Economies of Scale, and the Heckscher- Ohlin Theory of Trade-An Empirical Analysis of U.S. Meat Processing Industry