Does skill content explain total trade and intra-industry trade?

Manuel Cabral*, Rod Falvey, Chris Milner

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

2 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)601-619
Number of pages19
JournalOxford Bulletin of Economics and Statistics
Volume71
Issue number5
DOIs
Publication statusPublished - Oct 2009
Externally publishedYes

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