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An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparartive Advantage

Author

Listed:
  • Cheng, W.L.
  • Sachs, J.D.
  • Yang, X.

Abstract

In the paper we introduce technological comparative advantage and transaction costs into the Heckscher-Olin (HO) model and refine the HO theorem, the Stolper-Samuelson theorem, the Rybczynski theorem, and factor equalization theorem. The refined core theorems can be used to accommodate recent empirical evidence that is at odds with the core theorems.

Suggested Citation

  • Cheng, W.L. & Sachs, J.D. & Yang, X., 1999. "An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparartive Advantage," Papers 9, Chicago - Graduate School of Business.
    • Handle: RePEc:fth:chicbu:9
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    Cited by:

    1. Jeffrey Sachs & Xiaokai Yang & Dingsheng Zhang, 2005. "Pattern Of Trade And Economic Development In A Model Of Monopolistic Competition," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 10, pages 185-221, World Scientific Publishing Co. Pte. Ltd..
    2. Yanqing Jiang, 2016. "Trade integration and regional inequality: a theoretical framework with empirical implications for China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 14(4), pages 365-384, October.

    More about this item

    Keywords

    TRADE;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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