Guo, Baoping (2015): The North-South Trade Featuring the Leontief Trade Improves Poverty and Inequality.
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Abstract
This study derives the general trade equilibrium with factor price non-equalizations and demonstrates the Loentief trade (the trade pattern of the Leontief paradox) is a regular trade pattern theoretically. It also shows the doctrine and the sign predictions of the effective endowments (seeTrefler, 1993) and the virtual endowments (see Fisher and Marshal 2008), which introduced different productivities (technologies) within the Heckscher-Ohlin platform, have adopted the Loentief trade. The intersection of goods price diversifications cone (Fisher, 2011) can additionally demonstrate it. There are a hundred more pieces of literature reporting the evidence of the Leontief paradox. All of them are about the trades between North countries and South countries. The study illustrates that the essential features of the North-south trade are the Leontief trade. A unique phenomenon observed in the North-South trades is wages increasing both in the south and in the north. The Leontief trade can explain it well.
Item Type: | MPRA Paper |
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Original Title: | The North-South Trade Featuring the Leontief Trade Improves Poverty and Inequality |
English Title: | The North-South Trade Featuring the Leontief Trade Improves Poverty and Inequality |
Language: | English |
Keywords: | Localized factor prices, factor price equalization, factor price non-equalization, General equilibrium of trade, Leontief Paradox, Leontief trade |
Subjects: | A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics F - International Economics > F1 - Trade F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F15 - Economic Integration |
Item ID: | 113003 |
Depositing User: | Dr. Baoping Guo |
Date Deposited: | 13 May 2022 08:04 |
Last Modified: | 13 May 2022 08:04 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/113003 |
Available Versions of this Item
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Leontief Paradox Explored A New Trade Pattern When Countries Have Different Technologies. (deposited 11 Nov 2019 11:25)
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Heckscher-Ohlin Theories from Factor Price Equalization to Factor Price Localization vs Empirical Observations from the Leontief Paradox to the Leontief Trade. (deposited 07 Jun 2021 10:21)
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Heckscher-Ohlin Theories from Factor Price Equalization to Factor Price Localization vs Empirical Observations from the Leontief Paradox to the Leontief Trade. (deposited 21 Mar 2022 08:16)
- The North-South Trade Featuring the Leontief Trade Improves Poverty and Inequality. (deposited 13 May 2022 08:04) [Currently Displayed]
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Heckscher-Ohlin Theories from Factor Price Equalization to Factor Price Localization vs Empirical Observations from the Leontief Paradox to the Leontief Trade. (deposited 21 Mar 2022 08:16)
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Heckscher-Ohlin Theories from Factor Price Equalization to Factor Price Localization vs Empirical Observations from the Leontief Paradox to the Leontief Trade. (deposited 07 Jun 2021 10:21)