Trade effects based on general equilibrium

Theoretical and Applied Economics

卷:XXVI

Baoping GUO¹ 

[1] College of West Virginia, USA;

关键词: E;    Factor price equalization;    Heckscher-Ohlin;    Equilibrium price;    equalized factor price;   

DOI  :  

来源: DOAJ

【 摘 要 】

The Rybczynski theorem describes the trade effect within production analyses betweenfactor endowments and outputs. The Stolper-Samuelson theorem focuses on cost analyses betweenfactor reward and commodity price. This paper examines the trade effect of changes of factorendowments on prices, based on general equilibrium. The study shows that changes of factorendowments cause domestic output changes (the Rybczynski effect), which affect output prices andfactor prices (the Stolper-Samuelson effect). It is like a chain of effects that the Rybczynski’s tradeeffect triggers the Stolper-Samuelson’s trade effect. The analysis of this paper shows that a smallincrease of a factor endowment of any country rewards another factor and the commodity using thelatter factor intensively. It displays a tuneful circle. Trade brings a well-balanced development tothe world.

【 授权许可】

Unknown