The rising inequality of income distribution has attracted world’s attention since Krugman [2007] criticized the rising inequality in the U.S. especially after the 1980s. This phenomenon became well known worldwide when “Occupy Wall Street” movement broke out in 2011, and has been discussed in Stiglitz [2012] and Piketty [2013]. It must be noted, first, that their analysis is econometric or pol...

The effects of technical progress on relative factor prices in the two-country, two-good, two-factor Heckscher-Ohlin model are investigated. Technical progress is classified according to factor-augmenting bias, factor-using bias, and sector bias. A complete set of relations between technical progress parameters and relative factor prices, depending on the elasticities of substitution in demand ...

Contrary to conventional wisdom, this paper shows that a high-wage economy can paradoxically reduce its level of aggregate unemployment by engaging in international trade with low-wage country. We demonstrate possibility after introducing minimum wage into the basic specific-factor model (with immobile capital and mobile labor), even though opposite result is known arise longer-run framework st...

Rethinking the foundations of Heckscher–Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relation...

This article recapitulates some of the trade theories reputed to be twentieth century. Here, Heckscher-Ohlin theory (with its variants), endogenous growth theory, product cycle and new were considered. review thereof, amidst others, highlight assumptions these thus present critique same theories.

The paper retrospectively analyses the issue of impact international trade on developed countries’ labour markets in 1990s, when majority academic opinion denied role misfortunes unskilled workers. An analytical framework is proposed which intra-industry explained terms factor endowments and intensities goods. Unlike traditional Heckscher–Ohlin model inter-industry trade, suggested here more co...