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World history --- anno 1940-1949 --- anno 1980-1989 --- anno 1960-1969 --- anno 1950-1959 --- anno 1970-1979 --- Cold War --- Guerre froide --- Koude oorlog --- Oorlog [Koude ] --- World politics --- Cold War. --- Politique mondiale --- United States --- Soviet Union --- Etats-Unis --- URSS --- Foreign relations --- Relations extérieures --- Relations extérieures --- 1945 --- -Cold War

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Environmental Sciences and Forestry. Nature Management --- Forest management --- Forest policy --- Forests and forestry --- Nature conservation. --- Nature Conservation. --- Environmental aspects. --- Environmental aspects. --- Environmental aspects.

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We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity Equation. Since versions of both models can generate this prediction, we tackle the model identification problem by conditioning bilateral trade relations on factor endowment differences and the share of intra-industry trade, because only for large factor endowment differences does the Heckscher-Ohlin model generate specialization of production and the Gravity Equation, and it predicts inter-, not intra-industry trade. There are three major findings: First, little production is perfectly specialized due to factor endowment differences, making the perfect specialization version of the Heckscher-Ohlin model an unlikely candidate to explain the empirical success of the Gravity Equation. Second, increasing returns are important causes for perfect product specialization and the Gravity Equation, especially among industrialized countries. Third, to the extent that production is not perfectly specialized across countries, we find support for both Heckscher-Ohlin and Increasing Returns models. Based on these findings, we argue that both models explain different components of the international variation of production patterns and trade volumes, with important implications for productivity growth, labor and macroeconomics.