The HeckscherOhlin theorem is consistently supported by empi

The Heckscher–Ohlin theorem is consistently supported by empirical studies.

Select one:

True

False

Solution

Solution: True

Explanation: Heckscher–Ohlin states that an increase in labor supply in a nation will increase production of the labor-intensive good and reduce the production of the capital-intensive good. The Heckscher–Ohlin theorem is consistently supported by empirical studies. The study by Davis and Weinstein provided the maximum support for the Heckscher-Ohlin model