Rethinking the foundations of Heckscher–Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relation...

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...

1 Research Institute Brainclinics, Nijmegen, Netherlands, Department of Experimental Psychology, Utrecht University, Utrecht, Netherlands, Department of Child and Adolescent Mental Health, University Hospital of Erlangen, Erlangen, Germany, 4 kbo-Heckscher-Klinikum, München, Germany, 5 Laboratory for Neurology and Imaging of Cognition, Department of Neurosciences, University of Geneva, Geneva, ...