The Case of the Missing Trade and Other Mysteries: Reply

General-Equilibrium Approaches to the Multinational Firm: A Review of Theory and Evidence

“…Given the strong empirical interest in the factor content of trade (e.g., Davis and Weinstein, 1998;Trefler, 1995) it is remarkable that this proposition has attracted so little econometric study. In some degree, papers that place relative factor costs into FDI equations implicitly are looking for correlations between factor prices in segmented markets and investment flows.…”

The location of inward investment, technical change and skilled labour: Evidence from the United States

“…The detailed issues are not described here for reasons of brevity but interested readers are referred to Trefler (1995) and Leamer (2000). More recently, see Krugman (2000), the factor content model has had a wider acceptability restored through a re-interpretation of its meaning and the model retains validity as a tool of analysis for the study of international trade and the implications for FDI.…”

Testing the Application of Heckscher-Ohlin Theorem to Contemporary Trade Between Malaysia and Singapore

“…But even Trefler, whose criticisms were noted at the outset of this section, concluded in his 1 Emphasis added 1995 test of Heckscher-Ohlin that "the model that performed best combined Armington home bias with neutral international technology differences." (Trefler, 1995) Though there seems to be an insistence on the part of some scholars to discredit the H-O Theorem, no doubt prompting the exclamation mark at the end of Wood's title, attempts at doing so have remained inconclusive. Leontief himself disagreed with his paradox, and in the end it was proven to be flawed because he was missing something: natural resources as a factor of production.…”