Journal of Political Economy Vol. 85 No. 5 1977
The Relevance of the Two-Sector Production Model in Trade Theory
Abstract
This paper examines how well the basic properties of the traditional 2 × 2 model of a competitive economy, commonly used in much of the pure theory of international trade, generalize when more goods and factors are considered. The notion of factor intensity and the Hekscher-Ohlin, Stolper-Samuelson, and Rybczynski theorems are discussed. The role played by the no-joint-production assumption as opposed to small dimensionality in the latter two results is stressed. The mathematical appendix provides a compact and formal statement of the properties discussed in the text.
- Volume
- 85
- Issue
- 5
- Pages
- 909-935
- Sources
- bibtex:phds-export.bib