Was Ohlin's trade model always supported by evidence?
While the Heckscher-Ohlin model provides a powerful theoretical lens, its empirical validation has faced challenges. The Leontief paradox, for example, suggested that U.S. exports were more labor-intensive than imports, contrary to the model's predictions given the U.S.'s capital abundance. This highlighted the complexities of real-world trade, where factors beyond simple endowments, such as technology and trade barriers, play significant roles.
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