"An important addition to this classical doctrine of factor-price equalisation has been supplied by Professor Bertil Ohlin. In his weighty Interregional and International Trade (1933), Ohlin has developed the highly interesting result that (1)free mobility of commodities in international trade can serve as a partial substitute for factor mobility and (2) will lead to a partial equalisation of relative (and absolute) factor prices. This important result, which we may call the Ohlin-Heckscher theorem, since Ohlin attributes it to a 1919 Swedish article by Professor E. F. Heckscher, has some foreshadowings in the literature of the last century."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Paul Samuelson, "International Trade and the Equalisation of Factor Prices", The Economic Journal, Vol. 58, No. 230. (Jun., 1948)
https://en.wikiquote.org/wiki/Heckscher%E2%80%93Ohlin_model
Revision History
No revisions have been submitted for this quote.
Categories
Heckscher–Ohlin model
1 quote on TrueQuotesView all quotes by Heckscher–Ohlin model →
Related Quotes
"In contrast to Smith’s incomplete modeling, his follower, David Ricardo, provides a coherent setting— basically, the …"
"These ideas have implications not only for theoretical and econometric practices but also for the ways in which polic…"
"The different classes of models have a lot to learn from each other, but the goal of full integration has proven coun…"
"Policy models, aimed at analyzing actual macroeconomic policy issues. Models in this class should fit the main charac…"
"The IS-LM model appears to describe well the behavior of the economy in the short run. In particular, the effects of …"
"Yes, IS-LM simplifies things a lot, and can’t be taken as the final word. But it has done what good economic models a…"
"The biggest step I ever made was, I guess, the "Expectations and the Neutrality of Money" paper in 1972, in the sense…"
"The construction of an economic model, or of any model or theory for that matter (or the writing of a novel, a short …"
"The long term solution to the financial crisis is to move beyond the ‘growth at all costs’ economic model to a model …"
"Unless the fundamental categories of economics such as ‘property’ were to be redefined in a radically personal way th…"