Heckscher Ohlin Vanek Theorem: an excess supply approach

Srivastava Archana

MPRA Paper from University Library of Munich, Germany

Abstract: The paper attempts to work out Heckscher Ohlin Vanek theorem with the help of excess supply approach. The study examines trade performance of ten manufacturing industries on a cross section of 46 countries for the year 2009. Factors taken into consideration are primary, secondary and tertiary educated labor, capital stock, arable land. Data sources such as world integrated trade solutions, Barro and Lee database, world development indicators, food and agriculture organisation etc are used to empirically test the theorem. The results suggest that capital stock, higher education and land are the factors which are creating comparative advantage in current trade pattern and further HOV theorem proves out to be still valid in more than 60% of the cases.

Keywords: HOV Theorem; Excess Supply Approach (search for similar items in EconPapers)
JEL-codes: C21 F0 F10 (search for similar items in EconPapers)
Date: 2012-03
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