Resource supplies and changing world agricultural comparative advantage

Abstract

This papcr advanccs consideration of the Heckscher-Ohlin (H-O) theory of comparative advantage to agriculture in a dynarnic setting. The dynarnic relationship among trade 110ws, resourcc supplies, and factor contents is studied.The view that special circurnstances in the agricultural scctor render the H-O theory inapplicable as a guide ro agricultural tradc is challenged. Consistent with the H-O theory, the results suggest that changing world patterns of resource abundance are an important explanation of the evolving structure of world trade in agriculture commoditics.