ChFactorendowmenttheory(国际经济学华中科技大学,方齐云)剖析.pptVIP

Ch. 4 Factor endowment theory Factor abundance and factor intensity Assumptions of the theory Factor endowment and H-O theory Empirical test on H-O theory Factor abundance and factor intensity(1) Factor abundance Defined by factor endowment: assume that if Then we say country A is labor abundance and country B is capital abundance. Defined by relative factor price: assume that if Then we say country A is labor abundance and country B is capital abundance. Factor abundance and factor intensity(2) Assume that if Then we say product X is labor intensive product and product Y is capital intensive