The Heckscher-Ohlin Trade Model
A Geometric Treatment
Bibliographic Data
| ID | 9725535 |
|---|---|
| Authors | Kelvin Lancaster (corresponding author) |
| Year | 1957 |
| Volume | 24 |
| Issue | 93 |
| Pages | 19 |
| Publication date | 1957-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2551625 |
| OpenAlex | W2333021072 |
| Language | EN |
| Citations received | 5 |
The particular approach to the general theory of international trade which was first made by Heckscher2 and which was developed, and first published in English by Ohlin3 has now become part of the basic structure of the theory. In a sense it has replaced the classical and neo-classical method of approach, in which comparative costs provided the starting point for the theory of international trade, and its raison d'etre. There is, of course, no real conffict between the Heckscher-Ohlin approach and that by way of comparative costs. Comparative costs, properly stated, emerge from the Heckscher-Ohlin model, and this model, in fact, goes behind comparative costs and establishes them as due to something more fundamental, differences in factor endowments. As far as the theory of commodity trade is concerned, virtually all of the traditional structure of analysis could be carried out in terms of some elaboration of the comparative costs approach, such as the assumption of different, given, transformation functions for the trading countries. But the Heckscher-Ohlin model provided, for the first time, an analysis that was capable of integrating the factor markets into international trade theory in a satisfactory way, and much of its impact has been in this field. To a body of international trade theory which consisted primarily of propositions about the relative prices (or the results of certain relationships between the prices) of goods, there was now added a series of propositions about the relative prices of factors, culminating in the recent discussions concerning factor price equalisation 4.4 In its simplest (and, in many ways, most revealing) form, the Heckscher-Ohlin model concerns itself with a world which consists of a group of countries which use identical factors to produce identical goods by the use of identical production functions, these production
Commodity · Comparative advantage · Economics · Factor price · International economics · International trade · Market economy · Microeconomics · New trade theory · Point (geometry) · Relative price · Trade barrier · Global Trade and Competitiveness
| Unique citing works | 5 |
|---|---|
| Citations per year | 0,08 |
| Citation span | 1964 - 1992 (29) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |