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The Heckscher-Ohlin Model

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International Economics

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Abstract

We shall examine the Heckscher-Ohlin theory1 in its simplest version, that is a model in which there are two countries, two final goods and two primary factors of production. This theory, as we said in Sect. 1.2, stresses the differences in factor endowments as the cause of trade; more precisely, its basic proposition is that each country exports the commodity which uses the country’s more abundant factor more intensively (Heckscher-Ohlin theorem).

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Authors and Affiliations

  1. Faculty of Economics and Commerce, University of Rome, Via Castro Laurenziano 9, I-00161, Rome, Italy

    Professor Dr. Giancarlo Gandolfo

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  1. Professor Dr. Giancarlo Gandolfo
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© 1986 Springer-Verlag Berlin Heidelberg

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Gandolfo, G. (1986). The Heckscher-Ohlin Model. In: International Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07976-8_4

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  • DOI: https://doi.org/10.1007/978-3-662-07976-8_4

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-07978-2

  • Online ISBN: 978-3-662-07976-8

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