The Leontief paradox in a multi-country setting: Comments

Conclusions

Apart from the commodity mix effect, exports, imports consumption and production respond identically to changes in relative capital endowment, regardless of whether one refers to physical capital, human capital or total capital. Hence, when allowing technology and product mix to vary, one cannot distinguish between export goods and import goods in terms of capital intensity. These conclusions are still in agreement with Hirsch [1977, p. 418] who argues “Poor countries export low capital-intensive and import high capital-intensive goods, while rich countries import low capital-intensive and export high capital-intensive goods.” The only response that is significantly different is due to the commodity mix effect.