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The Development and Testing of Heckscher-Ohlin Trade ModelsA Review$
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Robert E. Baldwin

Print publication date: 2008

Print ISBN-13: 9780262026567

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262026567.001.0001

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Introduction

Introduction

Chapter:
(p.1) 1 Introduction
Source:
The Development and Testing of Heckscher-Ohlin Trade Models
Author(s):

Robert E. Baldwin

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262026567.003.0009

This introductory chapter begins with a discussion of the Heckscher–Ohlin (HO) proposition. It then sets out the book’s purpose, which is to review both the theoretical development of the basic insights of Heckscher and Ohlin into the modern factor-content trade model and the results of empirical tests of HO models. It devotes particular attention to examining the extent to which the factor-content version of the HO proposition is supported in these empirical tests. It also examines the results from investigating other predictions of HO models, in particular, the search for Stolper–Samuelson, Rybczynski, and factor price equalization effects. An overview of the subsequent chapters is also presented.

Keywords:   Heckscher–Ohlin proposition, trade theory, Stolper–Samuelson theorem, Rybczynski theorem, factor price equalization

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