Heckscher–ohlin Trade Theory
ثبت نشده
چکیده
Eli Heckscher (1919) and Bertil Ohlin (1933) laid the groundwork for substantial developments in the theory of international trade by focusing on the relationships between the composition of countries’ factor endowments and commodity trade patterns as well as the consequences of free trade for the functional distribution of income within countries. From the outset general equilibrium forms of analysis were utilized in these developments, which gradually came to be sorted out into four ‘core propositions’ (Ethier, 1974) in the pure theory of international trade.
منابع مشابه
Empirical foundations for the resurrection of Heckscher–Ohlin theory
We decompose the factor content of trade into Heckscher–Ohlin–Vanek trade and Ricardian trade. We measure factor content using only the United States' technology and also as Leontief advocated, using the local technology. In either case, differences in endowments are quite important in explaining the factor content of trade. If one uses raw estimated coefficients as a means of comparison, diffe...
متن کاملOne Size Fits All? Heckscher-Ohlin Specialization in Global Production
Many previous tests of Heckscher-Ohlin trade theory have found underwhelming support for the idea that countries’ endowments determine their production and trade. This paper demonstrates that those efforts suffer from their focus on the narrower of the model’s two potential equilibria, which assumes that all countries produce all goods. In this paper we introduce a more general technique for te...
متن کاملEconomic Competitiveness and Environmental Policy: An Application of the Heckscher-Ohlin-Vanek (HOV) Model
The relationship between trade liberalisation and the environment has been the subject of a growing body of literature in recent years. As can be seen from the differing assessment of instrument types for environmental protection, one of the important factors for the relationship between environmental protection and economic competitiveness are regulatory stringency and efficiency. This concern...
متن کاملIntra-industry trade: A Heckscher-Ohlin-Ricardo approach
The large volume of intra-industry trade is often cited as a critical element favoring trade theories based on increasing returns and imperfect competition over those with constant returns and perfect competition. The former provide an elegant account of intra-industry trade, while the latter, it is often argued, cannot. This paper provides an account of intra-industry trade based squarely on c...
متن کاملHeckscher-Ohlin explained by Walras
The Heckscher-Ohlin model with arbitrary number of goods, factors and countries (consumers) and no restrictions on factor trading is shown to be equivalent to an exchange model whose goods are the productive factors while consumer’s indirect demands for factors are derived from their actual demands for consumption goods. This equivalence enables one to import properties like the pathconnectedne...
متن کامل