1、,INTERNATIONAL TRADE,經(jīng)濟(jì)學(xué)院 柳哲,Chapter 5 Factor Endowments and the(要素稟賦說） Heckscher-Ohlin Theory （赫克雪爾-俄林定理）,Chapter 5 Factor Endowments and the(要素稟賦說） Heckscher-Ohlin Theory （赫克雪爾-俄林定理）,(Trade Model Extensions and applications),5.1 introduction,In 1919, Heckscher published “The Effect of Foreign Trad

2、e on the Distribution of Income”,In 1933 Ohlin published “Interregional and International Trade” Ohlin was awarded the 1977 Nobel prize in economics for his contribution to the theory of international trade.,5.2. Assumptions of the theory,(1) two nations, two commodities (X,Y), and two factors of pr

3、oduction (labor ,capital),(2) Both nations use the same technology in production;,The same commodity is labor intensive in both nations X - labor intensive ;Y- capital intensive,(4) Constant returns to scale;,(5) Incomplete specialization in production;,(6) Equal tastes in both nations;,(8) Perfect

4、internal but no international mobility of factor;,Perfect competition in both commodities and factor markets;,No transportation costs, tariffs, or other obstructions to the free flow of international trade;,(10) All resources are fully employed;,(11) Trade is balanced.,5.3 Factor intensity, Factor a

5、bundance, and the shape of the production frontier,5.3.1. factor intensity,The commodity Y is capital intensive if the capital-labor ratio (K/L) used in the production of Y is greater than K/L used in the production of X ( is not the absolute amount of K and L.),In Nation 1, K/L in X: 1/4,in Y : 1,S

6、o, X is L- intensive commodity; Y is K-intensive,In Nation 2, K/L in X: 1,in Y: 4,So, X is L-intensive commodity, Y is K-intensive,The obvious question is : Why does Nation 2 use more K-intensive production techniques in both commodities than Nation 1 ?,Why is capital relatively cheaper in Nation 2

7、?,5.3.2. Factor abundance,a. In terms of physical units : the overall amount of capital and labor available to each nation. The ratio of the total amount of capital to the total amount of labor.,Nation 2 is capital abundant if TK2/TL2 TK1/TL1,b. In terms of relative factor prices: the rental price o

8、f capital and the price of labor time in each nation. The ratio of the rental price of capital to the price of labor time,Pk/PL= r/w r: interest rate; w: wage rate,Nation 2 is capital abundant if PK2/PL2 PK1/PL1 or r2/w2 r1/w1,5.3.3 Factor abundance and the shape of the production frontier,Y,X,Natio

9、n 1,Nation 1 is the L-abundant nation; X is the L-intensive commodity,Nation 2,So, Nation 1 can produce relatively more of commodity x,5.4 The Heckscher-Ohlin Theory,1. Differences in relative factor endowments among nations underlie the basis for trade.,2. A nation will export the commodity in the

10、production of which a relatively large amount of its abundant and cheap resource is used.,3. Conversely, it will import commodities in the production of which a relatively scarce and expensive resource is used.,4.With trade the relative differences in resource prices between nations tend to be elimi

11、nated,(Factor proportions; Factor endowment theory),5.4.1 views of the Heckscher - Ohlin theorem,5.4.2 General equilibrium framework of the Heckscher - Ohlin theory,Tastes,Distribution of ownership of factors of production,Demand for final commodities,Derived demand for factors,Factor prices,Supply

12、of factors,Commodity prices,Technology,5.5 Illustration of the Heckscher - Ohlin Theory,5.6 Factor - Price Equalization and Income Distribution,Paul Samuelson - 1970 Nobel Prize in economics,Factor-price equalization theorem referred to as the H-O-S theorem,5.6.1 The factor-price equalization theore

13、m,International trade will bring about equalization in the relative and absolute returns to homogeneous factors across nations.,Both relative and absolute factor prices will be equalized.,International Trade and the Equalization of Factor Prices, 1948,Nation 1 is Labor abundant X is L-intensive comm

14、odity, X is with comparative advantage.,The relative price of labor (wage rate) is lower,Specializes in the production of commodity X,The relative demand for labor rises,Price of labor (wage) rises,Nation 2 is capital abundant , Y is K-intensive commodity, Y is with comparative advantage.,The relati

15、ve price of capital (interest rate) is lower and the relative price of labor is higher,Specializes in the production of commodity Y,reduces production of X (L-intensive),The relative demand for labor falls,Price of labor (wage) falls,5.6.2 Relative factor-price equalization,This is the process by wh

16、ich relative factor prices are equalized,Trade also equalizes the absolute returns to homogeneous factors.,5.6.3 Effect of trade on the distribution of income,Trade increases the prices of the nations abundant and cheap factor ;,And reduces the price of its scarce and expensive factor,2. Internation

17、al trade causes real wages and the real income of labor to fall in a capital-abundant and labor-scarce nation.,International trade causes real wages and the real income of labor to rise in a labor-abundant and capital-scarce nation.,Should the U.S. government restrict trade?,The loss that trade caus

18、es to labor is less than the gain received by owners of capital.,Draw a figure similar to following figure but showing that the Heckscher-Ohlin model holds, even with some difference in tastes between Notion 1 and Nation 2,Exercise,5.7 Empirical tests of the Heckscher-Ohlin model,5.7.1 The Leontief Paradox,The results of Leontief