*Does Skill Content Explain Total Trade and Intra-Industry Trade?

19 Pages Posted: 13 Oct 2009

See all articles by Manuel Heredia Cabral

Manuel Heredia Cabral

University of Minho

Rod Falvey

Bond University - Department of Economics

Chris Milner

University of Nottingham - School of Economics

Date Written: 0000

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.

Suggested Citation

Cabral, Manuel Heredia and Falvey, Rod and Milner, Chris, *Does Skill Content Explain Total Trade and Intra-Industry Trade? (0000). Oxford Bulletin of Economics and Statistics, Vol. 71, Issue 5, pp. 601-619, October 2009. Available at SSRN: https://ssrn.com/abstract=1487803 or http://dx.doi.org/10.1111/j.1468-0084.2009.00555.x

Manuel Heredia Cabral

University of Minho ( email )

Braga, 4700
Portugal

Rod Falvey

Bond University - Department of Economics ( email )

Bond University - Department of Economics
Gold Coast, Queensland 4229
Australia

Chris Milner

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

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