CH04 Resources and Trade The Heckscher-Ohlin Model(国际经济学-厦门大学 陈涛)宣讲培训.pptVIP

Empirical Evidence on the Heckscher-Ohlin Model Table 4-4: Testing the Heckscher-Ohlin Model Tests on North-South Trade North-South trade in manufactures seems to fit the Heckscher-Ohlin theory much better than the overall pattern of international trade. The Case of the Missing Trade A study by Trefler in 1995 showed that technological differences across a sample of countries are very large. Empirical Evidence on the Heckscher-Ohlin Model Empirical Evidence on the Heckscher-Ohlin Model Table 4-5: Trade Between the United States and South Korea, 1992 (million dollars) Empirical Evidence on the Heckscher-Ohlin Model Table 4-6: Estimated Technological Efficiency, 1983 (United States = 1) Implications of the Tests Empirical evidence on the Heckscher-Ohlin model has led to the following conclusions: It has been less successful at explaining the actual pattern of international trade. It has been useful as a way to analyze the effects of trade on income distribution. Empirical Evidence on the Heckscher-Ohlin Model The Heckscher-Ohlin model, in which two goods are produced using two factors of production, emphasizes the role of resources in trade. A rise in the relative price of the labor-intensive good will shift the distribution of income in favor of labor: The real wage of labor will rise in terms of both goods, while the real income of landowners will fall in terms of both goods. Summary For any given commodity prices, an increase in a factor of production increases the supply of the good that uses this factor intensively and reduces the supply of the other good. The Heckscher-Ohlin theorem predicts the following pattern of trade: A country will export that commodity which uses intensively its abundant factor and import that commodity which uses intensively its scarce factor. Summary Summary The owners of a country’s abundant factors gain from trade, but the owners of scarce factors lose. In reality, complete factor price equalization is not