| Title: | Factor Endowment, the Choice of Technology, and the Volume of Trade |
| Author: | Zhou, Haiwen |
| Author Affiliation: | Old Dominion University, Norfolk, VA |
| Abstract: | This paper studies the impacts of factor endowment on international trade in a general equilibrium model in which firms choose their technologies endogenously. Countries have different ratios of factor endowments. If industries choose different capital-labor intensities in equilibrium, the Heckscher-Ohlin theorem, factor price equalization theorem, the Rybczynski theorem, and the Stolper-Samuelson theorem hold. If industries choose the same capital-labor intensity in equilibrium, the volume of trade is zero. None of the four theorems applies. |
© 2005 International Economic Journal |