NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Factor Price Equalization in the UK?

Andrew B. Bernard, Stephen Redding, Peter K. Schott, Helen Simpson

NBER Working Paper No. 9052
Issued in July 2002
NBER Program(s):   ITI

This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region-industry factor quality differences and variation in production technology across industries. We test relative factor price equalization across regions of the UK. Although the UK is small and densely-populated, we find evidence of statistically significant and economically important departures from relative factor price equalization. Our estimates suggest three distinct relative factor price areas with a clear spatial structure. We explore explanations for these findings, including multiple cones of diversification, region-industry technology differences, agglomeration and increasing returns to scale.

download in pdf format
   (571 K)

email paper

This paper is available as PDF (571 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this paper also downloaded these:
Hanson and Slaughter w7074 The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States
O'Rourke and Williamson h0037 Were Heckscher and Ohlin Right? Putting the Factor-Price-Equalization Theorem Back into History
Bernard, Jensen, and Schott w8068 Factor Price Equality and the Economies of the United States
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us