Abstract
There exist two possible methods for the investigation, the inductive inference and deductive inference. The inductive inference collects empirical observations and infers the general conclusion from them. Although it is very useful for the practical purposes, the inductive inference cannot arrive to the definite conclusion. You observe as many white swans as you like in the northern hemisphere, but cannot conclude that swan is white, since you cannot exclude the possibility to see black swans in the southern hemisphere. You can collect all the cases in the past, but cannot conclude definitely, since you cannot know the possible cases in the future. To arrive at the definite conclusion, therefore, we have to rely on the deductive inference. It starts with some assumptions and derive logical conclusions from them. Some assumptions may be derived from inductive inference founded on the empirical observations while other assumptions are made merely as the simplifying assumptions. As far as the assumptions are admitted, and the logical operations are correct, the derived conclusion must be accepted.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Gandolfo, G., 1994, International Economics, I, Berlin: Springer Verlag.
Kemp, M. C., 1964, The Pure Theory of International Trade, Englewood Cliff, N.J.: Prentice Hall.
Leontief, W., 1954, Domestic Production and Foreign Trade; the American Capital Position Re-examined, Economia Internazionale, 7, pp. 3–32 (R. E. Caves and H. G. Johnson eds., Readings in International Economics, Homewood, Illinois; R. D. Irwin, 1968, pp. 503–527 ).
Minhas, B. S., 1962, The Homohypallagic Production Functions, Factor Intensity Reversals, and the Heckscher-Ohlin Theorem, Journal of Political Economy, 70, pp. 140–168.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2001 Springer Science+Business Media New York
About this chapter
Cite this chapter
Negishi, T. (2001). Leontief Paradox. In: Developments of International Trade Theory. Research Monographs in Japan-U.S. Business & Economics, vol 6. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-4959-5_12
Download citation
DOI: https://doi.org/10.1007/978-1-4757-4959-5_12
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4419-4902-8
Online ISBN: 978-1-4757-4959-5
eBook Packages: Springer Book Archive