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Trade theorems in a model of vertical production chain

Yan Ma

International Review of Economics & Finance, 2009, vol. 18, issue 1, 70-80

Abstract: This paper investigates the Rybczynski theorem, the Stolper-Samuelson theorem, and the Heckscher-Ohlin theorem in a two-factor vertical production chain model of trade. For this purpose, capital is introduced into the model of Yano and Dei [Yano, M., & Dei, F. (2003). Trade, vertical production chain, and competition policy. Review of International Economics, 11(2), 237-252.]. A primary analytic device is the economy-wide production curve. This curve is derived under autarky and free trade, respectively.

Keywords: Vertical; production; chain; Rybczynski; theorem; Stolper-Samuelson; theorem; Heckscher-Ohlin; theorem (search for similar items in EconPapers)
Date: 2009
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