Factor price equalization (FPE) is a central theme in trade theory, for which Dixit and Norman (1980) establish the …

theory, and in particular the theory of comparative advantage, is really just an application of benefit-cost analysis. This … is true both of many of the tools of trade theory, which are familiar as the same tools by which benefit-cost examines … all sorts of public projects and policies, and of the implications of the theory. Trade theory does not say, as sometimes …

A half-century of empirical work on the factor proportions theory has but has failed to devise simple amendments that … bring theory and data into reasonable congruence. Our study considers standard and novel hypotheses regarding the failures … confirmation of the HOV theory. Countries export the services of abundant factors and in approximately the right magnitude. HOV …