Latin American agricultural trade is consistent with both the Heckscher-Ohlin and Markusen propositions, which hold that countries export goods intensive in the use of their relatively abundant factor. This paper further shows that Latin American agricultural trade is primarily driven by country differences in relative factor abundance rather than by technology differences. This finding does not counter the Heckscher-Ohlin model, but counters one of Markusen's models, which allows for factor trade.
