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A Modified Heckscher-Ohlin Theorem Under Quasilinear Utility Functions

In: International Trade and Economic Dynamics

Author

Listed:
  • Junko Doi

    (Kansai University, Suita)

  • Kenji Fujiwara

    (Kwansei Gakuin University)

  • Toru Kikuchi

    (Kobe University)

  • Koji Shimomura

    (Kobe University)

Abstract

Constructing a two-country, two-good, two-factor model of international trade under quasilinear utility functions, we prove a modified Heckscher-Ohlin (MHO) theorem which relates trade patterns to the international distribution of factor endowments in a manner that has parallels with the standard HO theorem. The MHO theorem survives imperfect competition, increasing returns and externalities.

Suggested Citation

  • Junko Doi & Kenji Fujiwara & Toru Kikuchi & Koji Shimomura, 2009. "A Modified Heckscher-Ohlin Theorem Under Quasilinear Utility Functions," Springer Books, in: Takashi Kamihigashi & Laixun Zhao (ed.), International Trade and Economic Dynamics, pages 19-36, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-78676-4_5
    DOI: 10.1007/978-3-540-78676-4_5
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    Keywords

    Imperfect Competition; Trade Pattern; Factor Endowment; Free Entry; Perfect Competition;
    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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