Nicholas Tsounis, Evangelos Siskos
Bilateral Heckscher-Ohlin theory and the pattern of Greece's trade with the other EU countries
Journal of European Economy, Volume 1, Issue 3, December 2002, pp. 297-312
|JEL: F11, F14||Full text (PDF)|
In this article the Heckscher–Ohlin (H–O) Theorem in its «factor content» version is found to be valid under the existence of non-factor price equalisation conditions in the bilateral trade between two countries, in a model with three countries and many commodities. Further, the H–O Theorem is examined in the trade between Greece and the European Union (EU) countries. It is found that the differences in the pattern of specialisation in the trade between Greece and each of the EU countries is explained by differences in the relative factor endowments. The tests suggest that the H–O Model is valid in the trade between Greece and the EU countries.
Heckscher–Ohlin Theorem, Greece, EU