Factor-intensity reversals under monopolistic competition
Article Abstract:
A model is developed to show the impossibility of ruling out factor-intensity reversals (FIRs) under monopolistic competition unless production functions are homothetic. It is argued that although capital intensity at unchanged output remains constant, FIRs can still occur because the equilibrium output and average capital intensity depends on the wage-rental ratio. FIRs are also more likely in the case of imperfect competition.
Publication Name: Bulletin of Economic Research
Subject: Economics
ISSN: 0307-3378
Year: 1996
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Technical differences and inter-industry trade in the Nordic countries
Article Abstract:
The determinants of bilateral inter-industry trade between the Scandinavian countries are studied in terms of technical differences, a key determinant of international trade. A simple model is developed, where technical differences and capital-labor ratios interact in determining the net export. The hypothesis that countries will tend to have a net export in industries with relatively efficient technologies is tested.
Publication Name: Scandinavian Journal of Economics
Subject: Economics
ISSN: 0347-0520
Year: 1996
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The factor content of net trade for the OECD countries
Article Abstract:
The two-factor version of the Heckscher-Ohlin-Vanek theorem is applied to Organization for Economic Cooperation Development countries. A positive correlation is found between net export ranking per unit of labor and capital-labor ration ranking in the net trace of the countries with the rest of the world. Only few display expected net exports of embodied capital.
Publication Name: Journal of Economic Studies
Subject: Economics
ISSN: 0144-3585
Year: 1995
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