This study compares the results of skill content tests for types of trade flows under alternative assumptions about the technologies used to produce imports and exports. For trade between high- and middle-income countries, we show that the match between the actual skill content of trade and that predicted by endowments in a Heckscher-Ohlin-Vanek framework improves substantially if technological heterogeneity across countries is allowed for and if the factor content of intra-industry trade is included with that of inter-industry trade. Endowment differences are important in explaining net trade and vertical intra-industry trade, but not horizontal intra-industry trade.
|Number of pages||19|
|Journal||Oxford Bulletin of Economics and Statistics|
|Publication status||Published - Oct 2009|