 Heckscher-Ohlin via Factor-Intensive Production FunctionBruce C. Dieffenbach ()
Chapter 43 in Conjugate Duality in Economic Analysis, 2026, pp 317-325 from Springer Abstract: Abstract We develop further the Heckscher-Ohlin international-trade theory, by analyzing the two-sector, two-input model of production. The domestic-product primal maximizes the output value, subject to the technology and input constraints. Because the theory focuses on factor endowments and the capital/labor ratio in production, it is natural to set up the primal via factor-intensive production functions. The domestic-income dual then involves the factor-price frontier, the conjugate of the factor-intensive production function. The dual chooses input prices to minimize the value of the resource endowments, subject to the constraint that the prices lie on or above the factor-price frontiers. The necessary and sufficient conditions for solution to the primal and the dual provide the basis for a traditional comparative-statics analysis. The theorems of the Heckscher-Ohlin theory—factor-price equalization, Rybczynski, Heckscher-Ohlin direction of trade, and Stolper-Samuelson—revolve around factor prices and factor intensity. Differentiating the necessary and sufficient conditions obtains simple formulas that prove these theorems. The envelope condition explains key results. Date: 2026 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-032-21396-9_43 Ordering information: This item can be ordered from DOI: 10.1007/978-3-032-21396-9_43 Access Statistics for this chapter More chapters in Contributions to Economics from Springer |
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