WHAT IS PROPELLING THE AMERICAN WORKER TO GO THE WAY OF THE HORSE?

In today’s increasingly dynamic global economy, many industrialized nations are developing comparative advantages that are derived from human effort rather than natural status in their export industries. This is evidenced by a global pattern of shifting man-made comparative advantages over time. Empirical evidence seems to lend support to Wassily Leontief’s findings that would later contradict the previously accepted predictions of the factor endowment theory, which suggested that nations traded internationally based on their resource dispensations (Leontief, 1954). This study is a preliminary effort aimed at identifying meaningful factors that propel the development of human-based comparative advantages, and exploration of a testable theoretical framework that will aid a better understanding of the disposition of such factors for the United States exporting firms. Five intellectual property-intensive sectors are sampled. Primary findings indicate that the degree of economic freedom, patents enforcements and domestic lending rates may be important factors that help shape human-based advantages that lead to gains in export market share.