Heckscher-Ohlin Theory (2)

  • Takashi Negishi
Chapter
Part of the Research Monographs in Japan-U.S. Business & Economics book series (JUSB, volume 6)

Abstract

The basic economic model of the so-called Heckscher-Ohlin Theory is the two country two commodity two factor model where production functions are linear-homogeneous and the endowment of two factors of production is exogenously given for each country. Besides the factor price equalization theorem and Heckscher-ohlin theorem discussed in Chapter 10, we can have also two additional well-known theorems derived from this Heckscher-Ohlin model. The first one is the so-called Stolper-Samuelson Theorem (Stolper and Samuelson [1941]) which considers the effects of an import tariff on the factor prices. In other words, it concerns with the changes in factor prices caused by a change in the relative price of two commodities. The second one is called Rybczynski Theorem (Rybczynski [1955]) which deals with the changes in the scale of production of two industries caused by a change in the factor endowment in the case of a small country. This is the problem of the effects of the economic growth on the relative scale of the two domestic industries, when the relative price of two commodities are assumed to be constant.

Keywords

Marginal Product Relative Price Factor Price Factor Endowment Import Tariff 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Metzler, L. A., 1949, Tariffs, the Terms of Trade, and the Distribution of National Income, Journal of Political Economy, 57, pp. 1–29.CrossRefGoogle Scholar
  2. Ricardo, D., 1951, On the Principles of Political Economy and Taxation, Cambridge: Cambridge University Press.Google Scholar
  3. Rybczynski, T. M., 1955, Factor Endowment and Relative Commodity Prices, Economica, 22, 336–341.CrossRefGoogle Scholar
  4. Stolper, W. F. and P. A. Samuelson, 1941, Protection and Real Wages, Review of Economic Studies, 9, 50–73.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Takashi Negishi
    • 1
  1. 1.Aoyama Gakuin UniversityJapan

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