Outward-oriented economies seem to grow faster than inward-looking ones. Does the literature on convergence have anything to say on this? In the dynamic Heckscher-Ohlin-Samuelson model, with factor-price equalization, there is no convergence of incomes. This is because with identical preferences and return to capital, irrespective of initial levels the growth rates of consumption are the same....

We illustrate a new source of comparative advantage that is generated by countries’ different ability to adjust technological change. Our model introduces substitution workers in codifiable (routine) tasks with more efficient machines, process extensively documented the labor literature, into canonical 2 × Heckscher-Ohlin model. key hypothesis reallocation across subject frictions, importance whic...

Purpose Research based on Bangladesh–US trade data examines the Heckscher–Ohlin model and Rybczynski hypothesis in this study. Design/methodology/approach Ordinary least square (OLS) techniques are used study, which relies from NBER International Trade Geography Data UN Comtrade Database for years 2018 2008. Findings The research shows that between United States Bangladesh follows Rybcyzinski's...

The promotion of human welfare is undoubtedly one of the greatest challenges of economic development. To achieve this, many developing countries adopted trade liberalisation in the late 1980s, premised on the theoretical evidence based on the definitive Heckscher-Ohlin theory which predicts gains for the poor. The empirical support for this theory, however, is at best mixed. This paper employs ...

This paper examines the validity of the ̄ve fundamental theorems in the positive theory of international trade in a basic model of external economies of scale. It shows that some of these theorems are valid in more cases than the literature suggests. In particular, if global changes under the speci ̄ed adjustment mechanism are allowed, the Rybczynski and Stolper-Samuelson Theorems are always val...

This paper examines the role of international trade in the reallocation of U.S. manufacturing activity within and across industries from 1977 to 1997. It introduces a new measure of industry exposure to international trade, motivated by the Heckscher-Ohlin model, which focuses on where imports originate rather than their overall level. Results demonstrate that plant survival as well as output a...

Stages of Diversification in a Neoclassical World Recent research has documented a U-shaped industrial concentration curve over an economy’s development path. How far can neoclassical trade theory take us in explaining this pattern? We estimate the production side of the Heckscher-Ohlin model using industry data on 44 developed and developing countries for the period 1976-2000. Decomposing the ...