IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v34y2026i2p539-557.html

Revisiting the Leontief Paradox From a Value‐Added Trade Perspective

Author

Listed:
  • Juan‐Juan Sun
  • Yu‐Ching Wang
  • Jin‐Xu Lin
  • Shih‐Mo Lin

Abstract

This study revisits a well‐known thesis in international trade theory—the Leontief paradox—from a value‐added trade perspective within a global industrial linkage framework. Using the Heckscher–Ohlin model as a foundation, this paper employs world input–output tables and socioeconomic accounts compiled by the European Union to calculate the value added embodied in bilateral trade for specific economies. The analysis computes the capital‐to‐labor ratios of all traded goods for these economies from 2000 to 2014, aiming to identify the potential existence of the Leontief paradox. Our findings reveal that the Leontief paradox appears in many instances in the United States, especially within the services sector. However, when the value‐added trade concept is applied, the paradox is observed only in a few bilateral cases in the services sector. By contrast, the Leontief paradox is almost nonexistent in India, as a developing country with an abundant labor endowment, whether from a conventional trade perspective or a value‐added trade one is used.

Suggested Citation

  • Juan‐Juan Sun & Yu‐Ching Wang & Jin‐Xu Lin & Shih‐Mo Lin, 2026. "Revisiting the Leontief Paradox From a Value‐Added Trade Perspective," Review of International Economics, Wiley Blackwell, vol. 34(2), pages 539-557, May.
    • Handle: RePEc:bla:reviec:v:34:y:2026:i:2:p:539-557
    DOI: 10.1111/roie.70037
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roie.70037
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roie.70037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:34:y:2026:i:2:p:539-557. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.