Multiple cones, factor price differences and the factor content of trade

A-Tier
Journal: Journal of International Economics
Year: 2009
Volume: 79
Issue: 2
Pages: 266-271

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines the theoretical predictions of the multi-cone Heckscher-Ohlin model and the empirical evidence for it. I extend Helpman (1984)by identifying additional restrictions that characterize the free trade equilibrium. I illustrate that the complete set of restrictions are the building blocks of a multi-cone factor content specification which is the factor content dual to Alan Deardorff's (1979)well-known chain of comparative advantage goods prediction. The theoretical analysis implies that the existing tests of Helpman are incomplete. Applying the complete set of restrictions to Choi and Krishna's data set of 8 OECD countries, I find limited empirical support. This is compatible with previous studies suggesting that OECD countries do not occupy different cones.

Technical Details

RePEc Handle
repec:eee:inecon:v:79:y:2009:i:2:p:266-271
Journal Field
International
Author Count
1
Added to Database
2026-01-24