Working Paper
Heckscher-Ohlin Theory when Countries have Different Technologies
Eric O'N. Fisher
CESifo, Munich, 2010
CESifo Working Paper No. 3118
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
Trade Policy
JEL Classification: F100,O470