Heckscher–Ohlin theory when countries have different technologies |
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Authors: | Eric O'N. Fisher |
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Affiliation: | 1. Assistant Professor, Department of Economics, 315 Waters Hall, Kansas State University, Manhattan KS 66506 USA;2. Kansas State University and Centro Studi Luca d’Agliano, USA;1. University of Palermo, Department of Economics, Business and Statistics (SEAS), Viale delle Scienze, 90128 Palermo, Italy;2. University of Coimbra, Faculty of Economics, Av. Dias da Silva, 165, 3004-512 Coimbra, Portugal;3. University of Minho, Economic Policies Research Unit (NIPE), Campus of Gualtar, 4710-057 Braga, Portugal;4. OECD, Economics Department, 2 rue Andre Pascal, 75775 CEDEX 16 Paris, France;5. University of Minho, Department of Economics, Campus of Gualtar, 4710-057 Braga, Portugal;6. London School of Economics and Political Science, LSE Alumni Association, Houghton Street, London WC2A 2AE, United Kingdom |
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Abstract: | Rethinking the foundations of Heckscher–Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relationships. |
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