Titlebook: Comparative Advantage in International Trade; Theory and Evidence Mirela Keuschnigg Book 1999 Springer-Verlag Berlin Heidelberg 1999 Außenw

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Book 1999on. 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

Introduction

Soziale Versorgung zukunftsfähig gestaltenthe HO theorem that explains the factor content of trade rather than its commodity composition can, therefore, be proved. However, even though this is more general than the HO theorem, it is not less restrictive in terms of the assumptions needed for its proof.

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Jeremias Amstutz M. A.,Peter Zänglfor a particular country: . where Ɵ was invariant across countries. Now, we assume that Ɵ is a country-specific matrix of effective direct factor cost shares, following the adjustment for non-neutral technological differences in the parameters. Remember that in Section 2.2 we defined the factor pric

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1431-8830 nsistent 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-978-3-642-50214-9978-3-642-50212-5Series ISSN 1431-8830 Series E-ISSN 2196-8950

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Book 1999pirical 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-