In shipbuilding there are two types of ships. Producing basic bulk-carrying ships is labor intensive. Production of

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In shipbuilding there are two types of ships. Producing basic bulk-carrying ships is labor intensive. Production of complex ships, including the largest container ships and very deepwater oil-drilling ships, depends more on technical skills and design capabilities. Both China and South Korea have large shipbuilding industries. China’s factor endowments are shown in Figure 5.3, and comparable data for South Korea, reading across the columns, are 2.3%, 2.6%, 0.7%, 0.1%, 0.1%, 0.0%, 0.0%, and 0.2%. If China exports mostly basic bulk-carrying ships and South Korea exports mostly complex ships, is this pattern consistent with the Heckscher–Ohlin theory?

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