Traditional trade theory explains trade only by differences between countries, notably differences in their relative endowments of factors of production.
I Theory.- 1 Introduction.- 2 The Basic HOV Theory.- 3 Generalizations of HOV Theory.- 4 Theory-Based Empirical Implementation.- 5 Conclusions.- II Evidence.- 6 Introduction.- 7 Literature Overview.- 8 Empirical Analysis.- 9 Conclusions.- Appendix A.- Appendix B.- List of Symbols.- List of Abbreviations.
