Heckscher-Ohlin-Vanek Theorem

Definition

Economics

  • The prediction of the H-O-V Model that a country's net factor content of trade equals its own factor endowment minus its world-expenditure share of the world factor endowment. That is, for country i, Fi = Vi – siVW, where Fi is the factor content of its trade, Vi,VW its and the world's factor endowments, and si its share of world expenditure. Due to Vanek (1968).
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