Testing the Heckscher-Ohlin-Vanek model using spanish regional data
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Knowledge AreaEconomía Aplicada
SponsorsFrancisco Requena is member of INTECO (GRUPOS03/151) and is grateful for financial support from the Generalitat Valenciana, project number GV04B-070.
PublisherUniversity College Dublin
Bibliographic CitationARTAL TUR, Andrés, REQUENA SILVENTE, Francisco, CASTILLO GIMÉNEZ, Juana. Testing the Heckscher-Ohlin-Vanek model using spanish regional data. En: Annual Conference of the European Trade Study Group (7th.: 2005: Dublin). Testing the Heckscher-Ohlin-Vanek model using spanish regional data. Dublin: University College Dublin, 8-10 September 2005
KeywordsModelo Heckscher-Ohlin-Vanek (HOV)
We study the Heckscher-Ohlin-Vanek (HOV) model of trade empirically using regional data rather than country data. Our findings for the Spanish regions suggest that the HOV model performs remarkably well after relaxing the “strict” assumptions of world factor price equalisation and world identical and homothetic preferences. We also test whether Spanish regions share the same production techniques. Allowing for productivityadjusted factor price equalisation across regions or regional-specific input-output matrices contributes very little to improve the predictive capacity of the HOV model, suggesting that the state of technology and choice of techniques is quite similar across Spanish regions.
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