The Factor Content of Heterogeneous Firm Trade

摘要

The present paper studies the determinants of the factor content of the CEE agricultural trade. Compared to studies of factor content of the developed country trade, which usually rely on the HOV model, our analysis is considerably complicated by the fact that the CEEs are characterised by sizeable differences in technology and factor prices both compared to their main trading partner -EU and within the CEE. Given that these differences heavily violate the key assumptions of the HOV theorem, the traditional HOV model would yield biased results in the present study.