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Heckscher-Ohlin Model |
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Heckscher-Ohlin ModelA model of international trade in which comparative advantage derives from differences in relative factor endowments across countries and differences in relative factor intensities across industries. Sometimes refers only to the textbook or 2x2x2 model, but more generally includes models with any numbers of factors, goods, and countries. Model was originally formulated by Heckscher (1919), fleshed out by Ohlin (1933), and refined by Samuelson (1948, 1949, 1953).Similar MatchesHeckscher-Ohlin TheoremHeckscher-Ohlin TheoremThe proposition of the Heckscher-Ohlin Model that countries will export the goods that use relatively intensively their relatively abundant factors. Heckscher-Ohlin-Samuelson ModelHeckscher-Ohlin-Samuelson ModelUsually synonymous with the Heckscher-Ohlin Model, although sometimes the term is used to distinguish the more formalized, mathematical version that Samuelson used from the more general but less well-defined conceptual treatment of Heckscher and Ohlin. Heckscher-Ohlin-Vanek TheoremHeckscher-Ohlin-Vanek TheoremThe prediction of the H-O-V Model that a country's net factor content of trade equals its own factor endowment minus its world-expenditure share of the world factor endowment. That is, for country i, Fi = Vi - siVW, where Fi is the factor content of its trade, Vi,VW its and the world's factor endowment, and si its share of world expenditure. Due to Vanek (1968). Heckscher-Ohlin Core PropositionsHeckscher-Ohlin Core PropositionsSee core propositions. Textbook Heckscher-Ohlin ModelTextbook Heckscher-Ohlin ModelThe 2x2x2 model. Further SuggestionsHeckscher-Ohlin-Vanek Model |
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