The Heckscher-Ohlin model and the tariff structures of the industrial countries

Abstract

Some recent empirical researches on the tariff structure of industrial countries have again drawn the attention to the problem of the empirical relevance of the Heckscher-Ohlin theory of trade and - incidentally - to the related question of the legitimacy of the discrimination charge levelled by the “third world” against the tariff schedules of the developed countries. Two studies in particular have argued that the relationship between labour intensity and protection is not definite. The present paper shows that these findings are based on the use of an inadequate definition of the factor-proportions concept. A correct identification of labour-intensive and capital-intensive manufacturers leads to fully different conclusions, which do not require the rejection of the factor-proportions theory of trade and show that the tariff schedules of some industrial countries are clearly biased against imports of manufacturers from developing countries.

JEL: F12, F13, F16