Working Paper

Heckscher-Ohlin Theory when Countries have Different Technologies

Eric O'N. Fisher
CESifo, Munich, 2010

CESifo Working Paper No. 3118

Rethinking the foundations of Heckscher-Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relationships.

CESifo Category
Trade Policy
JEL Classification: F100,O470