Abstract
This section reviews some of the typical studies based on the HO theory. Some of the most important theoretical contributions are mentioned and the results of several empirical studies are discussed, with emphasis on the cross-industry studies.
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His study cannot be considered as a test of the HO theorem, as he does not use data on factor endowments.
The underestimation is caused by the implicit assumption of homogeneous goods
(goods in the same statistical category produced in different countries are of the same type, hence of the same skill-intensity), and results from using domestic labor coefficients which refer to the production of different and more skill-intensive goods in developed countries.
Using the data set described in Section 8.2.1, the correlations are 0.15 and 0.24, respectively.
“World” refers to a group of countries to which the analysis is restricted.
His dependent variable is defined as the difference between exports in $1 million total exports and imports in $1 million total imports.
Research intensity is defined as the share of research and development (R&D) expenditures in total sales, or the ratio of R&D scientists and engineers to all employees. The industries where these shares are both larger than 3.5% are taken to be research-intensive.
e.g., NIC countries.
Following Deardorff (1984), the sum of gross output for 27 countries in the sample is taken as an approximation of the world market size.
Learner defines knowledge capital as the number of professional and technical workers.
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© 1999 Physica-Verlag Heidelberg
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Keuschnigg, M. (1999). Literature Overview. In: Comparative Advantage in International Trade. Studies in Empirical Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-50212-5_8
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DOI: https://doi.org/10.1007/978-3-642-50212-5_8
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-642-50214-9
Online ISBN: 978-3-642-50212-5
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