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.


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