Trade4HeckscherOhlinhandout外文文献翻译.pptVIP

* * * * * * * * * * * Matti Sarvim?ki Matti Sarvim?ki * The Heckscher-Ohlin Model Appleyard Field ( Cobb): Chapters 8 9 (Krugman Obstfeld: Chapter 3 4) * Assumptions of the Heckscher-Ohlin-(Samuelson)-Model Two countries, two (homogeneous) goods and two (homogeneous) factors of production Identical technology, different factor endowments Constant returns to scale Different factor intensities in production Factors perfectly mobile inside each country and immobile between the countries Identical preferences among everyone (unimportant, easily relaxed) Perfect competition in all markets → (price of labour) w = MPPL*P, (price of capital) r = MPPK*P No transportations costs (unimportant, easily relaxed) * Factor Endowments Countries differ in their relative factor endowments Notation: K=capital, L=labour, r=price of capital, w=price of labour Physical definition: (K/L)1 (K/L)2 ? country 1 is capital-abundant (labour-scarce), country 2 is labour-abundant (capital-scarce) Price definition: (r/w)1 (r/w)2 ? country 1 is capital-abundant, country 2 is labour-abundant Given assumptions of perfect competition + identical technology and preferences, the physical and price definitions are identical * Commodity Factor Intensity Good X is capital-intensive and good Y labour-intensive if KX/LX KY/LY for all relative factor prices (r/w) ? the firm always maximizes profits / minimizes cost by using relatively more capital in producing X than in producing Y Capital Labour Isoquant for X Isoquant for Y * Gains from Trade in the Hecksher-Ohlin Model Labour intenstive Good (e.g clothes) Capital Intensive Good (e.g. paper) (PC/PP)HA (PC/PP)FA (PC/PP)HA (PC/PP)FA Notation: F = “foreign” H = “home” C=cloth P=paper A=autarky FT=free trade PPF of the “home” country PPF of “foreign” country Identical preferences in both countries * Gains from Trade in the Hecksher-Ohlin Model Labour intenstive Good (e.g clothes) Capital Intensive Good (e.g. paper) (PC/PP)HA (PC/PP)FT (PC/PP)FA (PC