Robinson and Marshall-Lerner conditions with positive import content of exports

The usual Robinson and Marshall-Lerner conditions were derived under the assumption that exports are produced with domestic resources only. If, however, one takes into consideration that the ‘import content of exports’ is positive, the export price elasticities in the Robinson and Marshall-Lerner conditions have to be corrected accordingly. This correction factor is larger for smaller countries, because they are more intensely engaged in international trade.