resources and trade

这是一篇关于resources and trade的思维导图，This model shows that comparative advantage is influenced by

Chapter Five—RESOURCES AND TRADE: THE HECKSCHER-OHLIN MODEL

• proposed by British economist David Ricardo
• This model shows that comparative advantage is influenced by
  • the interaction between nations’ resources (the relative abundance of factors of production).
  • the tech-nology of production (which influences the relative intensity with which different factors of production are used in the production of different goods)
• Model of a Two-Factor Economy
  • Prices and Production
    • QC = QC (KC, LC) QF = QF (KF, LF)
      • QC and QF are the output levels
      • KC and LC are the amounts of capital and labor
      • KF and LF are the amounts of capital and labor
      • aKC = capital used to produce one yard of cloth aLC = labor used to produce one yard of cloth aKF = capital used to produce one calorie of food aLF = labor used to produce one calorie of food
  • Choosing the Mix of Inputs
  • Factor Prices and Goods Prices
    • The importance of a particular factor’s price to the cost of producing a good depends, however, on how much of that factor the good’s production involves.
  • Resources and Output
    • Generally, an economy will tend to be relatively effective at producing goods that are intensive in the factors with which the country is relatively well endowed.
• Effects of International Trade between Two-Factor Economies
  • Home has a higher ratio of labor to capital than Foreign does.
  • Relative Prices and the Pattern of Trade
    • Hecksher-Ohlin Theorem: The country that is abundant in a factor exports the good whose production is intensive in that factor.
  • Trade and the Distribution of Income
    • The general conclusion
      • Owners of a country’s abundant factors gain from trade, but owners of a country’s scarce factors lose.
  • Skill-Biased Technological Change and Income Inequality
  • Factor-Price Equalization
• Empirical Evidence on the Heckscher-Ohlin Model
  • Trade in Goods as a Substitute for Trade in Factors: Factor Content of Trade
    • Tests on U.S. Data
    • Tests on Global Data
    • The Case of the Missing Trade
    • A Better Empirical Fit for the Factor Content of Trade
  • Patterns of Exports between Developed and Developing Countries
  • Implications of the Tests