Multi-factor, multi-country testing of the Heckscher-Ohlin theorem without factor price equalization: A critical view
Publicated to:Structural Change And Economic Dynamics. 73 354-367 - 2025-06-01 73(), DOI: 10.1016/j.strueco.2025.02.002
Authors: Lopez, J
Affiliations
Abstract
Several recent empirical studies conclude that there is evidence in favour of a version of the Heckscher-Ohlin theorem that dispenses with the assumption of factor price equalization. However, many of these studies base their conclusions on small data sets, relating to one or two factors and a not very high level of disaggregation by industry. Moreover, the studies do not always take into account international differences in factor efficiency. In the present study, the Heckscher-Ohlin model is tested by considering data available in the World Input-Output Database (2016 release) for 7 factors, 56 industries and 40 countries plus a composite 'country' comprising the rest of the world, and by measuring factor use in efficiency units. Analysing this data sample, it is found that the capital and skill content of trade is only weakly correlated with countries' factor abundance. This correlation is weaker when international differences in factor use are adjusted for relative factor efficiency and when the level of industry disaggregation increases. Paradoxically, this is not the case for the energy and emissions content of trade.
Keywords
Quality index
Bibliometric impact. Analysis of the contribution and dissemination channel
The work has been published in the journal Structural Change And Economic Dynamics due to its progression and the good impact it has achieved in recent years, according to the agency WoS (JCR), it has become a reference in its field. In the year of publication of the work, 2025, it was in position 43/617, thus managing to position itself as a Q1 (Primer Cuartil), in the category Economics. Notably, the journal is positioned above the 90th percentile.
Impact and social visibility
Leadership analysis of institutional authors
There is a significant leadership presence as some of the institution’s authors appear as the first or last signer, detailed as follows: First Author (RODRIGUEZ LIBOREIRO, PABLO) and Last Author (Lopez, J).
the author responsible for correspondence tasks has been Lopez, J.