NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

An Account of Global Factor Trade

Donald R. Davis, David E. Weinstein

NBER Working Paper No. 6785
Issued in November 1998
NBER Program(s):   ITI

A half-century of empirical work on the factor proportions theory has identified devise simple amendments that bring theory and data into reasonable congruence. Our study considers standard and novel hypotheses regarding the failures of the Heckscher-Ohlin-Vanek formulation and is the first to examine these directly on the technology and absorption data of interest. We show how a few simple and plausible amendments, verified directly by this data, suffice for a striking confirmation of the HOV theory. Countries export the services of abundant factors and in approximately the right magnitude. HOV works.

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Document Object Identifier (DOI): 10.3386/w6785

Published: Davis, Donald R. and David E. Weinstein. "An Account Of Global Factor Trade," American Economic Review, 2001, v91(5,Dec), 1423-1453. citation courtesy of

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