• Table of Contents
    • Abstract
    • Keywords
    • Article
      • The four theorems
      • Relationships among the theorems
      • Higher dimensions
      • Joint production
      • Concluding remarks
        • The Heckscher–Ohlin theorem
        • The factor-price equalization theorem
        • The Stolper–Samuelson theorem
        • The Rybczynski theorem
    • See Also
    • Bibliography
    • How to cite this article

Heckscher–Ohlin trade theory

Ronald W. Jones
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
Alternate versions available: 1987 Edition
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Heckscher–Ohlin trade theory consists of four principal theorems, viz. the Heckscher–Ohlin trade theorem whereby relatively capital-abundant countries export relatively capital-intensive commodities, the factor-price equalization theorem whereby trade in goods may serve to equalize wage rates between countries, the Stolper–Samuelson theorem whereby an increase in the price of the relatively labour-intensive commodity unambiguously improves the real wage rate, and the Rybczynski theorem stating that an increase in capital endowment by itself must cause some output to fall if prices are held constant. The article discusses the nature and fate of these theorems.
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How to cite this article

Jones, Ronald W. "Heckscher–Ohlin trade theory." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 18 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_H000034> doi:10.1057/9780230226203.0718

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