Trade Theory and Factor Intensities: An Interpretive Essay

Ronald Jones

Review of International Economics, 2002, vol. 10, issue 4, 581-603

Abstract: Since Heckscher’s 1919 pioneering contribution to international trade theory, the concept of “factor intensity” has played a key role in explanations of trade patterns and the consequences of international trade for local income distribution. This essay discusses the uses that have been made of the concept and its applicability to problems that are couched in higher dimensions. The author suggests that it has an important role to play in “new” trade theory in which the strong link between commodity prices and costs of production may be removed by the existence of imperfectly competitive markets.

Date: 2002
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