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Comparative Advantage in International Trade

Theory and Evidence

  • Book
  • © 1999

Overview

Authors:
  1. Mirela Keuschnigg

    1. Saarbrücken, Germany

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Part of the book series: Studies in Empirical Economics (STUDEMP)

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Table of contents (10 chapters)

  1. Front Matter

    Pages i-viii
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  2. Introduction

    1. Introduction

      • Mirela Keuschnigg
      Pages 1-3

  3. Theory

    1. Front Matter

      Pages 5-5
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    2. Introduction

      • Mirela Keuschnigg
      Pages 7-11

    3. The Basic HOV Theory

      • Mirela Keuschnigg
      Pages 13-20

    4. Generalizations of HOV Theory

      • Mirela Keuschnigg
      Pages 21-33

    5. Theory-Based Empirical Implementation

      • Mirela Keuschnigg
      Pages 35-51

    6. Conclusions

      • Mirela Keuschnigg
      Pages 53-53

  4. Evidence

    1. Front Matter

      Pages 55-55
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    2. Introduction

      • Mirela Keuschnigg
      Pages 57-59

    3. Literature Overview

      • Mirela Keuschnigg
      Pages 61-79

    4. Empirical Analysis

      • Mirela Keuschnigg
      Pages 81-138

    5. Conclusions

      • Mirela Keuschnigg
      Pages 139-142

  5. Back Matter

    Pages 143-164
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Keywords

About this book

Traditional trade theory explains trade only by differences between countries, notably differences in their relative endowments of factors of production. It suggests an inverse relationship between the similarity of countries and the volume of trade between them. The Heckscher-Ohlin (HO) factor propor­ tions theory derives the determinants of comparative advantage in a world of "two-ness" (two goods, two factors, two countries). It predicts that each country will export that good which uses the country's abundant factor rel­ atively most intensively. The literature on trade offers an impressive number of studies based on the HO theory. The main methodological problems en­ countered in the literature are: first, the appropriate formulation of the HO theorem in a multi-factor, multi-good and multi-country framework; second, proper tests of the HO theory and proper links of the theory to empirical analysis. The relevance of the HO theory began to be questioned when important facts of modern international trade proved to be inconsistent with its theoretical framework. Leontief (1953) tested the factor proportions theory, using the US data for 1947, and found that the US had more labor-intensive exports than imports, which is opposed to both perceptions and estimations of factor endowments. The Leontief Pamdoxcreated doubt as to whether or not actual trade patterns and factor endowments are related as predicted by theory, and caused many controversial discussions with regard to the proper empirical implementation of the factor proportions theory.

Authors and Affiliations

  • Saarbrücken, Germany

    Mirela Keuschnigg

Bibliographic Information

  • Book Title: Comparative Advantage in International Trade

  • Book Subtitle: Theory and Evidence

  • Authors: Mirela Keuschnigg

  • Series Title: Studies in Empirical Economics

  • DOI: https://doi.org/10.1007/978-3-642-50212-5

  • Publisher: Physica Heidelberg

  • eBook Packages: Springer Book Archive

  • Copyright Information: Springer-Verlag Berlin Heidelberg 1999

  • Softcover ISBN: 978-3-642-50214-9Published: 01 June 2012

  • eBook ISBN: 978-3-642-50212-5Published: 06 December 2012

  • Series ISSN: 1431-8830

  • Series E-ISSN: 2196-8950

  • Edition Number: 1

  • Number of Pages: VIII, 164

  • Topics: International Economics

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