International trade and the equalisation of factor prices
About: This article is published in The Economic Journal.The article was published on 1948-06-01. It has received 903 citations till now. The article focuses on the topics: Factor price equalization & Factor price.
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01 Jan 1977
TL;DR: In this article, the authors discuss ways in which production financed by foreign direct investment, that undertaken by multinational enterprises (MNEs), has affected our thinking about the international allocation of resources and the exchange of goods and services between countries.
Abstract: The main task of this paper is to discuss ways in which production financed by foreign direct investment, that is, that undertaken by multinational enterprises (MNEs), has affected our thinking about the international allocation of resources and the exchange of goods and services between countries. The analysis takes, as its starting point, the growing convergence between the theories of international trade and production, and argues the case for an integrated approach to international economic involvement, based both on the location-specific endowments of countries and the ownership-specific endowments of enterprises. In pursuing this approach, the paper sets out a systemic explanation of the foreign activities of enterprises, in terms of their ability to internalise markets to their advantage. It concludes with a brief examination of some of the effects which the MNE is allegedly having on the spatial allocation of resources, and on the patterns of trade between countries.
2,137 citations
TL;DR: In this article, the authors proposed a method to improve the quality of the service provided by the service provider by using the information of the user's interaction with the provider and the provider.
Abstract: Обсуждаются следующие темы: чистая теория производства, функциональное распределение дохода, технический прогресс, источники международных конкурентных преимуществ. Анализируются эластичность замещения между трудом и капиталом в обрабатывающей промышленности; производственные функции различного типа.
1,947 citations
Posted Content•
TL;DR: This study was begun while the author was on a Brookings Economic Policy Fellowship in the Office of Economic Research of the Economic Development Administration as mentioned in this paper, and the authors have made helpful comments on earlier drafts of the paper and none of whom bears any responsibility for remaining shortcomings.
Abstract: This study was begun while the author was on a Brookings Economic Policy Fellowship in the Office of Economic Research of the Economic Development Administration. Acknowledgements are due Paul L. Burgess, Richardj Cebula, James A. Chalmers, Herbert M. Kaufman, Todd Sandler, WalterJ Wadycki, and the referees for this journal, all of whom have made helpful comments on earlier drafts of the paper and none of whom bears any responsibility for remaining shortcomings.
1,136 citations
Posted Content•
TL;DR: The Heckscher-Ohlin-Vanek (HOV) theorem, which predicts that countries will export products that are made from factors in great supply, performs poorly as mentioned in this paper.
Abstract: The Heckscher-Ohlin-Vanek (HOV) theorem, which predicts that countries will export products that are made from factors in great supply, performs poorly. However, deviations from HOV follow pronounced patterns. Trade is missing relative to its HOV prediction. Also, rich countries appear scarce in most factors and poor countries appear abundant in all factors, a fact that squares poorly with the HOV prediction that abundant factors are exported. As suggested by the patterns, HOV is rejected empirically in favor of a modification that allows for home bias in consumption and international technology differences. Copyright 1995 by American Economic Association.
987 citations
TL;DR: This article examined episodes of major postwar trade federalization within specified groups of countries and found a strong link between the timing of trade reform and income convergence among countries, suggesting that there is a strong relationship between timing of reform and convergence.
Abstract: How does movement toward freer trade affect income disparity among countries? This paper attempts to shed some light on the issue by examining episodes of major postwar trade hberalization within specified groups of countries. The findings suggest a strong link between the timing of trade reform and income convergence among countries.
838 citations