英语论文网

factors, trade, factor abundance and factor intensity.Extensive country and commodity analyses by Bowen and Sveikauskas (1992) concluded that the use of these two factors does not significantly affect our results, thus can be used to test the HOV theory.

 

As Deardorff (1984) highlighted, to take the above regression equation to data a number of things need to be considered about the variables to be used. Deardoff noted that for the results to be meaningful the independent variables must be factor shares rather than relative physical ratios and the factor shares must be total factor shares (direct and indirect), while the dependent variable should be scaled up net exports. They is need to control for possible bias, heteroscedasticity and possible correlation as well. The HOV model will be tested on aggregate trade and sensitive analysis will also be done using regional trade and excluding some sectors.

 

Looking at 1980 the factor services embodied in South Africa’s exports and imports differed slightly (a capital-labour ratio of 0.11373 for exports and 0.10383 for imports). However, given that the country is a net exporter of both capital and labour intensive goods we look at the factor content embodied in consumption and net trade. Following Learner’s work, a look at these ratios reflects that South Africa is capital abundant as the capital intensity of net trade is great than the capital intensity in consumption. This trend did not change for 1990 and 2000 as South Africa remained a net exporter to the world of both capital and labour goods. South Africa is well known to be relatively labour abundant and this result does not support the HOV model, which predicts that a country will export goods produced using intensively its relatively abundant factor. These are the same results found by Leontief (1953) when he discovered that US was revealed to be relatively labour abundant and he termed this result the “Leontief Paradox” as US was well known to be capital abundant and this result was also supported by Baldwin (1971).

 

A look at the skilled and unskilled labour embodied in South Africa’s trade in the three periods all revealed that South Africa was a net exporter of both skilled and unskilled labour services. Thus, to determine whether South Africa is skilled or unskilled labour abundant we look at the skilled-unskilled ratios for consumption and net trade. The ratios reveal that South Africa is relatively more endowed with unskilled labour as the skilled-unskilled labour embodied in net trade is less that the skilled-unskilled labour embodied in consumption. This result supports the HOV model predictions as South Africa is relatively unskilled labour abundant.

 

Given that the natural resource sector in South Africa is perceived to be relatively capital abundant, exclusion of all natural resource goods in our analysis can give us a better picture about South Africa’s factor content embodied in its goods. In 1980 and 1990 South Africa was a net importer of both capital and labour goods, while in 2000 it became a net ex本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。