Working Paper: NBER ID: w8637
Authors: Donald R. Davis; David E. Weinstein
Abstract: Study of the factor content of trade has become a laboratory to test our ideas about how the key elements of endowments, production, absorption and trade fit together within a general equilibrium framework. Already a great deal of progress has been made in fitting these pieces together. Nevertheless, the existing research raises a great many questions that should help to focus empirical research in the coming years. Among the more pressing issues is a deeper consideration of the role of intermediates, the role of aggregation biases, and of differences in patterns of absorption. This work should provide a more substantial foundation for future policy work developed within a factor content framework.
Keywords: No keywords provided
JEL Codes: F1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| factor content of trade (F10) | testing general equilibrium theory (D58) |
| accurate prediction of factor content (C38) | supports validity of theories for policy applications (D78) |
| mapping factor content of trade to domestic wage impacts (F16) | need for caution (D18) |
| trade openness (F43) | economic outcomes (F61) |
| last fifteen years of research (B20) | progress in understanding factor content of trade (F11) |