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Leontief Paradox

  • Takashi Negishi
Chapter
Part of the Research Monographs in Japan-U.S. Business & Economics book series (JUSB, volume 6)

Abstract

There exist two possible methods for the investigation, the inductive inference and deductive inference. The inductive inference collects empirical observations and infers the general conclusion from them. Although it is very useful for the practical purposes, the inductive inference cannot arrive to the definite conclusion. You observe as many white swans as you like in the northern hemisphere, but cannot conclude that swan is white, since you cannot exclude the possibility to see black swans in the southern hemisphere. You can collect all the cases in the past, but cannot conclude definitely, since you cannot know the possible cases in the future. To arrive at the definite conclusion, therefore, we have to rely on the deductive inference. It starts with some assumptions and derive logical conclusions from them. Some assumptions may be derived from inductive inference founded on the empirical observations while other assumptions are made merely as the simplifying assumptions. As far as the assumptions are admitted, and the logical operations are correct, the derived conclusion must be accepted.

Keywords

Inductive Inference Deductive Inference Capital Labor Ratio Black Swan International Trade Theory 
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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References

  1. Gandolfo, G., 1994, International Economics, I, Berlin: Springer Verlag.Google Scholar
  2. Kemp, M. C., 1964, The Pure Theory of International Trade, Englewood Cliff, N.J.: Prentice Hall.Google Scholar
  3. Leontief, W., 1954, Domestic Production and Foreign Trade; the American Capital Position Re-examined, Economia Internazionale, 7, pp. 3–32 (R. E. Caves and H. G. Johnson eds., Readings in International Economics, Homewood, Illinois; R. D. Irwin, 1968, pp. 503–527 ).Google Scholar
  4. Minhas, B. S., 1962, The Homohypallagic Production Functions, Factor Intensity Reversals, and the Heckscher-Ohlin Theorem, Journal of Political Economy, 70, pp. 140–168.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Takashi Negishi
    • 1
  1. 1.Aoyama Gakuin UniversityJapan

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