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A Modified Heckscher-Ohlin Theorem under Quasi-Linear Utility Functions

Author

Listed:
  • Kenji Fujiwara

    (Graduate School of Economics, Kobe University, Japan)

  • Koji Shimomura

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Constructing a two-country, two-good, two-factor model of international trade under quasi-linear utility functions, we obtain a Modified Heckscher-Ohlin (MHO) Theorem that relates the trade pattern to the international distribution of factor endowments. We also show that the MHO Theorem survives imperfect competition and increasing returns.

Suggested Citation

  • Kenji Fujiwara & Koji Shimomura, 2003. "A Modified Heckscher-Ohlin Theorem under Quasi-Linear Utility Functions," Discussion Paper Series 145, Research Institute for Economics & Business Administration, Kobe University.
  • Handle: RePEc:kob:dpaper:145
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp145.pdf
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    Keywords

    The Modified Heckscher-Ohlin Theorem; Quasi-linear utility function; Imperfect competition; Increasing returns to scale;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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