The observational equivalence of the Ricardian and Heckscher-Ohlin explanations of trade patterns

Files in This Item:
File Description SizeFormat 
wp84_22.pdf242.65 kBAdobe PDFDownload
Title: The observational equivalence of the Ricardian and Heckscher-Ohlin explanations of trade patterns
Authors: Neary, J. Peter
Permanent link: http://hdl.handle.net/10197/1411
Date: Apr-1984
Abstract: This paper reviews the issue, first considered by J. L. Ford of the observational (as opposed to the logical) equivalence of the Ricardian and Heckscher-Ohlin explanations of trade patterns. A necessary and sufficient condition for local equivalence is derived and interpreted: loosely speaking, capital intensity and elasticities of substitution must be positively associated across sectors. However, it is shown that global equivalence may be prevented either by factor intensity reversals or by labour productivity reversals. Finally, it is noted that conditions which guarantee equivalence appear to be empirically plausible.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Subject LCSH: International trade
Heckscher-Ohlin principle
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Page view(s) 5

334
checked on May 25, 2018

Download(s) 50

64
checked on May 25, 2018

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.