Factor intensity reversal

 

Home
Site Map
Add Term
Search
About Us
Contributors

Factor intensity reversal

A property of the technologies for two industries such that their ordering of relative factor intensities is different at different factor prices. For example, one industry may be relatively capital intensive compared to the other at high relative wages and labor intensive at low relative wages. Some propositions of the Heckscher-Ohlin Model require the absence of FIRs.



Similar Matches

Capital intensity

Capital intensity

A measure of the relative use of capital, compared to other factors such as labor, in a production process. Often measured by the ratio of capital to labor, or by the share of capital in factor payments.


Trade intensity index

Trade intensity index

For a group or bloc of countries, usually in a PTA, the ratio of the bloc's share of intra-bloc trade to the bloc's share in world trade. If greater than one, this is said to suggest that the bloc displays trade diversion. Index seems to be due to Frankel (1997).


Factor intensity

Factor intensity

The relative importance of one factor versus others in production in an industry, usually compared across industries. Most commonly defined in by ratios of factor quantities employed at common factor prices, but sometimes by factor shares or by marginal rates of substitution between factors.


Factor intensity uniformity

Factor intensity uniformity

The absence of factor intensity reversals.




 
All rights Reserved. Do not copy without permission.