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The Heckscher-Ohlin model as an aggregate

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  • J. Peter Neary

Abstract

The opening quotation reflects the widespread view that the Heckscher-Ohlin model of international trade, with its emphasis on sectoral factor intensities, cannot fruitfully be used as a basis for detailed predictions in models of higher dimension than the textbook two-factor, two-commodity case. The purpose of the present chapter is not to dispute this viewpoint but rather to suggest that there nevertheless exists a method of aggregation that enables a limited role to be salvaged from the two-by-two HeckscherOhlin model as a predictor of comparative statics responses in more general models.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • J. Peter Neary, 1983. "The Heckscher-Ohlin model as an aggregate," Working Papers 198307, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:198307
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    File URL: http://hdl.handle.net/10197/1400
    File Function: First version, 1983
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