Open AccessThe Heckscher-Ohlin Theorem Of International Trade Theory: New Empirical Tests For Brazil
Author(s) -
Benedict Clements
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v3i1.6543
Subject(s) - economics , capital intensity , capital (architecture) , empirical research , international economics , international trade , econometrics , macroeconomics , monetary economics , human capital , market economy , geography , mathematics , statistics , archaeology
Using Brazilian data, this paper empirically tests the Heckscher-Ohlin theorem. The results indicate that Brazils exports taken as a whole are more labor-intensive than its import substitutes, as predicted. However, this is largely due to the great capital-intensity of oil, accounting for half of all imports. In fact, some indicators show Brazils industrial exports as more capital-intensive than its non-oil imports, suggesting that not all Brazilian exports are labor intensive.