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Tests of the Factor Price Equalization Theorem
( Jakob B. Madsen ) 세종대학교 경제통합연구소 1996 Journal of Economic Integration Vol.11 No.2
Using annual data for 21 OECD countries over the period 1960 to 1993 this paper tests whether real wages have converged to a common mean alongside with increasing openness, as predicted by the factor price equalization theorem. The empirical estimates suggest that real wage convergence has taken place in most OECD countries. ([EL F02, J3)
Tests of the Factor Price Equalization Theorem
Madsen, Jakob B. 세종대학교 국제경제연구소 1996 Journal of Economic Integration Vol.11 No.2
Using annual data for 21 OECD countries over the period 1960 to 1993 this paper tests whether real wages have converged to a common mean alongside with increasing openness, as predicted by the factor price equalization theorem. The empirical estimates suggest that real wage convergence has taken place in most OECD countries.(JEL: F02, J3)