THE DEVELOPMENT AND TESTING OF HECKSCHER- OHLIN TRADE MODELS

It has been 75 years since the publication of Bertil Ohlin’s (1933) pathbreaking treatise on interregional and international trade and nearly 90 years since the publication of the article by Ohlin’s teacher, Eli Heckscher (1919), that significantly shaped Ohlin’s thinking about trade theory.1 No names are more closely associated with modern trade theory than those of Heckscher and Ohlin. As the basis for international trade, their model focuses on differences among countries in relative factor supplies and on differences among commodities in the intensities with which they use these factors.