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학술저널

Tests of the Factor Price Equalization Theorem

Tests of the Factor Price Equalization Theorem

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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)

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