How robust is the evidence that the HeckscherOhlin Theorem i

How robust is the evidence that the Heckscher-Ohlin Theorem is a good predictor of the goods a nation should export? What is the key assumption in the HOT that needs to be relaxed for the HOT to be a better predictor?

Solution

HOT is based on the factor endowments. A country with abundant factor, tends to specialise in production of item or good which is available in plenty.

But empirical evidences do not support sufficiently to this theorem. Leontief Paradox has proved that how US was specialising in production of commodity which was using scarce and expensive resources.

Relaxation of few assumptions would make HOT more reliable: