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Four Hypotheses

In: The Theory of International Trade

Author

Listed:
  • Branko Horvat

    (The Institute for Advanced Studies)

Abstract

The mainstream trade theory revolves around the four theorems described earlier: (1) the Heckscher—Ohlin theorem determining the pattern of trade, (2) the factor—price equalization theorem, (3) the Stolper—Samuelson theorem on changes in relative factor prices depending on different factor intensities of countries starting to trade with each other and (4) the Rybczynski theorem determining output changes when the supply of a particular factor increases depending on factor intensity of output.

Suggested Citation

  • Branko Horvat, 1999. "Four Hypotheses," Palgrave Macmillan Books, in: The Theory of International Trade, chapter 14, pages 85-92, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-98338-6_14
    DOI: 10.1057/9780333983386_14
    as

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