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The Heckscher–Ohlin model (/hɛkʃr ʊˈliːn/, H–O model) is a general equilibrium mathematical model of international trade, developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics.
The Heckscher–Ohlin theorem is one of the four critical theorems of the Heckscher–Ohlin model, developed by Swedish economist Eli Heckscher and Bertil Ohlin (his student). In the two-factor case, it states: "A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good."
Heckscher–Ohlin can refer to: Heckscher–Ohlin model, a general equilibrium mathematical model of international trade; Heckscher–Ohlin theorem, one of the four ...
The original Heckscher–Ohlin model was a two-factor model with a labor market specified by a single number. Therefore, the early versions of the theorem could make no predictions about the effect on the unskilled labor force in a high-income country under trade liberalization.
Marc Melitz and Pol Antràs started a new trend in the study of international trade. While new trade theory put emphasis on the growing trend of intermediate goods, this new trend emphasizes firm level differences in the same industry of the same country and this new trend is frequently called 'new' new trade theory (NNTT).
This econometric finding was the result of Wassily W. Leontief's attempt to test the Heckscher–Ohlin theory ("H–O theory") empirically. In 1953, Leontief found that the United States —the most capital-abundant country in the world—exported commodities that were more labor -intensive than capital-intensive, contrary to H–O theory. [ 1 ]
(The Center Square) – A record-setting rate hike request by an Illinois gas utility is being challenged by consumer advocacy groups. Nicor Gas has filed a $309 million rate hike proposal with ...
The hypothesis was proposed by economist Staffan Burenstam Linder in 1961 [1] as a possible resolution to the Leontief paradox, which questioned the empirical validity of the Heckscher–Ohlin theory (H–O). H–O predicts that patterns of international trade will be determined by the relative factor-endowments of different nations.