THE THEORY OF HECKCHER-OHLIN INTERNATIONAL TRADE WITH THE EXPORT POLICY OF BAC NINH PROVINCE (VIETNAM)

Abstract

Bac Ninh is one of the leading localities in the country in terms of export turnover for many consecutive years. To fully exploit the resources that exports bring and to answer the questions "To export what?", "To whom to export" and "How to export" require practical policies derived from relevant economic theories as well as practical experience from other countries. One of the important economic theories that can be used to explain these problems is the Hecker-Ohlin theory. The study used the financial statements of three large enterprises in Bac Ninh province representing three prominent commodity groups of the province, namely textiles, plastics and electronic components to calculate the ratio K/L, thereby assessing the suitability level of Hecker-Ohlin theory with practice. The results show that this theory is still true for the export of Bac Ninh province, basically the exporting countries are still based on the concept of the abundance of factors of production. However, besides this theory, there are also certain limitations, it is necessary to have appropriate policies to apply the Heckcher-Ohlin theory as well as the export experience of some other countries to promote domestic export.