Year: 1983
Type: report
Abstract: This paper addresses the relation between goods trade and international factor mobility in general terms.Conditions for factor price equalization are derived for situations with trade in both goods and factors, as well as Rybczynski and Stolper-SarnuelSofl theorems.A weak price version of the Heckscher-Ohlifl theorem is presented, as well as stronger quantity versions.The basic theorems of international trade, suitably interpreted, are shown to hold in their strong versions if the number of international markets is at least as large as the number of factors.The crucial dimensionality issue is hence not the relative number of goods and factors per se, but the number of international markets relative to the number of factors.Only the price version of the Heckscher-Ohlifl theorem fails to be essentially preserved by this condition.
DOI: 10.3386/w1115
Authors: Wilfred Ethier, Lars Svensson
Institutions: Stockholm University, University of Pennsylvania
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2000383052