IDEAS home Printed from https://ideas.repec.org/a/eee/inecon/v48y1999i2p413-420.html
   My bibliography  Save this article

The three faces of factor intensities

Author

Listed:
  • Jones, Ronald W.
  • Beladi, Hamid
  • Marjit, Sugata

Abstract

The concept of factor intensity has played a key role in the development of international trade theory. The factor proportions utilized in the production of commodities differ from activity to activity. Some commodities employ a higher ratio of capital to labor than do others, and the basic Heckscher-Ohlin Theorem explaining the pattern of international trade links a nations's factor endowment proportions of capital to labor to the capital/labor factor intensities of its export activities. This theorem has been exhaustively analyzed to reveal that exceptions may occur when technologies exhibit factor-intensity reversals, when demand conditions are highly asymmetric between countries, or when the number of factors and commodities exceeds the frequently-assumed value two. Our remarks in this paper proceed along different lines. We argue that in explaining the link between factor intensities associated with a nation's exports, imports or non-traded activities and that nation's factor endowment base, at least three rather separate roles for factor intensities can be identified. Once this is done, paradoxical statements such as, "Exports from laborabundant countries are capital intensive", can be shown to have some validity. Furthermore, in explaining this position recourse is had to various characteristics of technology and trade which have been in the forefront of recent developments in trade theory, e.g., quality differences in an intra-industry setting, increasing returns to scale activities, uncertainty in production, and the role of services in trade.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jones, Ronald W. & Beladi, Hamid & Marjit, Sugata, 1999. "The three faces of factor intensities," Journal of International Economics, Elsevier, vol. 48(2), pages 413-420, August.
  • Handle: RePEc:eee:inecon:v:48:y:1999:i:2:p:413-420
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022-1996(98)00038-5
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Leamer, Edward E, 1980. "The Leontief Paradox, Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 495-503, June.
    2. Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557-557.
    3. Borcherding, Thomas E & Silberberg, Eugene, 1978. "Shipping the Good Apples Out: The Alchian and Allen Theorem Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 86(1), pages 131-138, February.
    4. Jones, Ronald W, 1974. "The Small Country in a Many-Commodity World," Australian Economic Papers, Wiley Blackwell, vol. 13(23), pages 225-236, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chakrabarti, Avik, 2004. "Asymmetric adjustment costs in simple general equilibrium models," European Economic Review, Elsevier, vol. 48(1), pages 63-73, February.
    2. Douglas A. Irwin, 2000. "Ohlin Versus Stolper-Samuelson?," NBER Working Papers 7641, National Bureau of Economic Research, Inc.
    3. Hamid Beladi & Avik Chakrabarti & Sugata Marjit, 2010. "Skilled-Unskilled Wage Inequality And Urban Unemployment," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 997-1007, October.
    4. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.

    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:eee:inecon:v:48:y:1999:i:2:p:413-420. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505552 .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.