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[6] The Heckscher-Ohlin-Vanek (HOV) theory has been a central focus of empirical research in international trade ever since. Davis and Weinstein consider various explanations of the failures of the Heckscher-Ohlin-Vanek (HOV) formulation and their relationship to the data on technology and absorption. This hypothesis suggests that the traditional Heckscher-Ohlin-Vanek theory works if there are factor-augmenting differences in technology (for example, if an English worker is equivalent to 80 percent of an American worker). |
Heckscher-Ohlin-Vanek |
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