Resource title

Relativity in trade theory: towards a solution to the mystery of missing trade

Resource image

image for OpenScout resource :: Relativity in trade theory: towards a solution to the mystery of missing trade

Resource description

Using OECD input output matrices consistently, we offer a tentative solution to the mystery of missing trade. First, we confirm the usual rejection of factor price equalization and identical technologies. Second, we develop a new technique to compute the factor content of trade when countries technologies are different. Measuring factor content conventionally, we find a putative paucity of trade in these data. When factor content is measured correctly, theory predicts the direction and volume of trade more accurately. Thus measuring the factor content of trade according to the country of origin may vindicate the Heckscher-Ohlin-Vanek paradigm.

Resource author

Eric O'N. Fisher, Sharon L. May

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25863

Resource license

Adapt according to the presented license agreement and reference the original author.