The Heckscher-Ohlin Model Under Uncertainty: An Assessment

  • Raveendra N. Batra


Owing to its simplicity and the plausibility of the results that it yields, the two-sector, two-factor, constant returns to scale framework, devised originally by Heckscher and Ohlin to develop a theory of the pattern of trade, has been extensively utilised in the exploration of various issues, some of which not even remotely resemble the question of the trade pattern. Nevertheless, irrespective of the context in which it is used, the two-sector model is generally called the H.O. model. Thus, although the Rybczynski, the Stolper—Samuelson and the factor-price equalisation theorems were discovered by different writers at different points in time, the structure of production underlying each proposition transpired to be the unifying H.O. model. In fact, it would not be inappropriate to say that the H.O. model has come to be identified with the two-by-two apparatus, whether or not the problem under consideration deals with international trade.†


International Trade Commodity Price Factor Price Trade Pattern Undesirable Property 
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  1. [1]
    Harberger, A. C., ‘The Incidence of the Corporation Income Tax’, Journal of Political Economy, 70 (June 1962) 215–40.CrossRefGoogle Scholar
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    Jones, R. W., ‘A Three Factor Model in Theory, Trade and History’, in J. N. Bhagwati et al.(eds.), Trade, Balance of Payments and Growth(Amsterdam: North Holland, 1971) chap. 1.Google Scholar
  3. [3]
    Samuelson, P. A., ‘International Factor Price Equalization Once Again’, Economic Journal, 59 (June 1949) 181–97.CrossRefGoogle Scholar

Copyright information

© Raveendra N. Batra 1975

Authors and Affiliations

  • Raveendra N. Batra
    • 1
  1. 1.Southern Methodist UniversityUSA

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