Testing for Stolper-Samuelson, Rybczynski, and Factor Price Equalization Effects
Testing for Stolper-Samuelson, Rybczynski, and Factor Price Equalization Effects
This chapter reviews selected empirical investigations of the other basic propositions of the Heckscher–Ohlin (HO) model. These are the relationship between relative changes in product prices and relative changes in factor prices (Stolper–Samuelson effects); the relationship between changes in relative factor supplies and changes in the composition of output (Rybczynski effects), and the relationship between trade and the equalization of factor prices (factor price equalization effects).
Keywords: Stolper–Samuelson effects, Rybczynski effects, factor price equalization, Heckscher–Ohlin model
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