  Empirical evidence for the Heckscher-Ohlin model has been inconclusive. We
test whether the predictions of the Heckscher-Ohlin Theorem with respect to
labor and capital find support in value-added trade. Defining labor-capital
intensities and endowments as the ratio of hours worked to the nominal capital
stock, we find evidence against Heckscher-Ohlin. However, taking the ratio of
total factor compensations, and thus accounting for differences in
technologies, we find strong support for it. That is, labor-abundant countries
tend to export value-added in goods of labor-intensive industries. Moreover,
differentiating between broad industries, we find support for nine out of
twelve industries.
