Which of the following empirical studies cast the most doubt on the Heckscher-Ohlin model?
A) the study by Wassily Leontief
B) the study by Bowen, Leamer, and Sveikauskas
C) the study by David Ricardo
D) the study by Adam Smith
E) the study by Davis and Weinstein

Question

Quizplus · Accepted Answer

The study by Wassily Leontief, known as the Leontief Paradox, found that the US, which was assumed to have a comparative advantage in capital-intensive goods, actually exported more labor-intensive goods and imported more capital-intensive goods. This contradicted the predictions of the Heckscher-Ohlin model, causing doubt in the validity of the theory.

Which of the Following Empirical Studies Cast the Most Doubt