On the Heckscher-Ohlin Analysis and the Gains from Trade with Profit-Maximizing and Labour Managed Firms
Although much attention has been paid to labour-managed firms or economies, almost none of the studies focused on the analysis of general equilibrium trade theories. The only exceptions are the work of Ishii (1986, 1990). In particular, Ishii (1986) dealt with the Heckscher-Ohlin analysis in an economy with two countries, one of which is a labour-managed country and the other is a capitalist country. Under the assumption of constant returns to scale technologies, he showed that the traditional trade theorems such as the Rybczynksi, the factor price equalization, the Stolper-Samuelson and the Heckscher-Ohlin theorems prevail.
KeywordsFixed Cost Commodity Price Japanese Firm Factor Endowment Perfect Competition
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