Factor Endowment, the Choice of Technology, and the Volume of Trade

Zhou, Haiwen (2007): Factor Endowment, the Choice of Technology, and the Volume of Trade. Published in: International Economic Journal , Vol. 21, No. 4 (2007): pp. 593-611.

Abstract

This paper studies impacts of factor endowment on international trade in a general equilibrium model in which firms choose their technologies endogenously. Though countries only differ in factor endowment ex ante, countries may also differ in their chosen technologies. If industries choose different capital-labor intensities in equilibrium, the Heckscher-Ohlin theorem, factor price equalization theorem, the Rybczynski theorem, and the Stolper-Samuelson theorem hold. If industries choose the same capital-labor intensity in equilibrium, the volume of trade is zero. None of the four theorems applies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Choice of technology, factor endowment, factor price equalization, Heckscher-Ohlin model, volume of trade
• Subjects: F - International Economics > F1 - Trade; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

References

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