Leontief Paradox - Measurements

Measurements

• In 1971 Robert Baldwin showed that US imports were 27% more capital-intensive than US exports in the 1962 trade data, using a measure similar to Leontief's.
• In 1980 Edward Leamer questioned Leontief's original methodology on Real exchange rate grounds, but acknowledged that the US paradox still appears in the data (for years other than 1947).
• A 1999 survey of the econometric literature by Elhanan Helpman concluded that the paradox persists, but some studies in non-US trade were instead consistent with the H-O theory.
• In 2005 Kwok & Yu used an updated methodology to argue for a lower or zero paradox in US trade statistics, though the paradox is still derived in other developed nations.