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World Equalized Factor Price and Integrated World Trade Space

Guo, Baoping (2018): World Equalized Factor Price and Integrated World Trade Space.

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This paper studies the approach to attain a general equilibrium for the Heckscher-Ohlin model in the context of higher dimensions. The equalized factor prices at the higher dimensions are the prices that Dixit and Norman illustrated, i.e., that the world price will remain the same when allocations of factor endowments change within a higher-dimension equalized factor price set . The study derives a way to access the share of GNP and the trade flow of each country.

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