Technology and International Trade: a Heckscher—Ohlin Approach

  • Carl Hamilton
  • Hans Tson Söderström
  • Kemal Dervis
Chapter

Abstract

The step from Ricardo to Heckscher—Ohlin in international trade theory carried with it some optimistic overtones with respect to the international distribution of income. The factor price equalisation theorem reduced the problem of rich and poor nations to a question of trade, capital accumulation and functional distribution of income. The promotion of free trade would in the long run be sufficient to equalise between countries the rewards of labour and capital. Reality’s failure to comply with this theoretical prediction has produced a variety of suggestions as to which simplifying assumptions of the Heckscher—Ohlin model are not fulfilled in the real world.

Keywords

Human Capital Production Function International Trade Final Output Physical Capital 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Sven Grassman and Erik Lundberg 1981

Authors and Affiliations

  • Carl Hamilton
    • 1
  • Hans Tson Söderström
    • 1
  • Kemal Dervis
    • 2
  1. 1.Sweden
  2. 2.USA

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