The factor proportions hypothesis of trade theory has been the subject of a large number of empirical tests but few of them have analyzed the changes in the factor content of trade in a country over time or across countries. This study analyzes the changes in factor intensity of trade in Mexico, Japan, Korea, Taiwan and Israel during the 1960s. It traces back the changes in capital-labor ratios in the production of exports and import substitutes to variations in the sectoral composition of trade, changes in factor-output ratios (labor and capital), and changes in input-output coefficients.
ASJC Scopus subject areas
- Economics and Econometrics