Factor Endowment, the Choice of Technology, and the Volume of Trade

Haiwen Zhou

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies impacts of factor endowment on international trade in a general equilibrium model in which firms choose their technologies endogenously. Though countries only differ in factor endowment ex ante, countries may also differ in their chosen technologies. If industries choose different capital-labor intensities in equilibrium, the Heckscher-Ohlin theorem, factor price equalization theorem, the Rybczynski theorem, and the Stolper-Samuelson theorem hold. If industries choose the same capital-labor intensity in equilibrium, the volume of trade is zero. None of the four theorems applies.

Keywords: Choice of technology; factor endowment; factor price equalization; Heckscher-Ohlin model; volume of trade (search for similar items in EconPapers)
JEL-codes: F1 O33 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (3)

Published in International Economic Journal 4.21(2007): pp. 593-611

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:76424

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