Abstract
The Heckscher–Ohlin prediction that international trade should lead to relative factor prices converging internationally is one that receives abundant empirical support for the period that was the focus of interest for these two economists, namely the ‘long nineteenth century’. In labour-abundant regions, wage–rental ratios increased, whereas they declined in land-abundant countries.
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O’Rourke, K.H. (2018). Factor Price Equalization (Historical Trends). In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2681
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2681
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