Trade-revealed factor abundance: further evidence

Abstract

Using the Heckscher-Ohlin-Vaneck (HOV) model of international trade, this study demonstrates that trade-revealed factor abundance can be approached by using a single country as well as a cross-country setting. Various criteria are used to measure relative factor abundance. Further evidence concerning the application of the HOV model with unbalanced trade is also provided. The results shed light on the controversial issues surrounding the Leontief Paradox, and show that analysis of the factor content of trade in a cross-country setting is of benefit in uncovering factor abundance ranking, which is often less evident when data from only a single country are under scrutiny. Show more