Trade effects based on general equilibrium
The Rybczynski theorem describes the trade effect within production analyses between factor endowments and outputs. The Stolper-Samuelson theorem focuses on cost analyses between factor reward and commodity price. This paper examines the trade effect of changes of factor endowments on prices, based...
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General Association of Economists from Romania
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doaj-3cc7322d48d140fe9c99ea947d33d8722020-11-25T01:10:18ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292019-03-01XXVI115916818418678Trade effects based on general equilibriumBaoping GUO0 College of West Virginia, USA The Rybczynski theorem describes the trade effect within production analyses between factor endowments and outputs. The Stolper-Samuelson theorem focuses on cost analyses between factor reward and commodity price. This paper examines the trade effect of changes of factor endowments on prices, based on general equilibrium. The study shows that changes of factor endowments cause domestic output changes (the Rybczynski effect), which affect output prices and factor prices (the Stolper-Samuelson effect). It is like a chain of effects that the Rybczynski’s trade effect triggers the Stolper-Samuelson’s trade effect. The analysis of this paper shows that a small increase of a factor endowment of any country rewards another factor and the commodity using the latter factor intensively. It displays a tuneful circle. Trade brings a well-balanced development to the world. http://store.ectap.ro/articole/1381.pdf EFactor price equalizationHeckscher-OhlinEquilibrium priceequalized factor price |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Baoping GUO |
spellingShingle |
Baoping GUO Trade effects based on general equilibrium Theoretical and Applied Economics E Factor price equalization Heckscher-Ohlin Equilibrium price equalized factor price |
author_facet |
Baoping GUO |
author_sort |
Baoping GUO |
title |
Trade effects based on general equilibrium |
title_short |
Trade effects based on general equilibrium |
title_full |
Trade effects based on general equilibrium |
title_fullStr |
Trade effects based on general equilibrium |
title_full_unstemmed |
Trade effects based on general equilibrium |
title_sort |
trade effects based on general equilibrium |
publisher |
General Association of Economists from Romania |
series |
Theoretical and Applied Economics |
issn |
1841-8678 1844-0029 |
publishDate |
2019-03-01 |
description |
The Rybczynski theorem describes the trade effect within production analyses between
factor endowments and outputs. The Stolper-Samuelson theorem focuses on cost analyses between
factor reward and commodity price. This paper examines the trade effect of changes of factor
endowments on prices, based on general equilibrium. The study shows that changes of factor
endowments cause domestic output changes (the Rybczynski effect), which affect output prices and
factor prices (the Stolper-Samuelson effect). It is like a chain of effects that the Rybczynski’s trade
effect triggers the Stolper-Samuelson’s trade effect. The analysis of this paper shows that a small
increase of a factor endowment of any country rewards another factor and the commodity using the
latter factor intensively. It displays a tuneful circle. Trade brings a well-balanced development to
the world. |
topic |
E Factor price equalization Heckscher-Ohlin Equilibrium price equalized factor price |
url |
http://store.ectap.ro/articole/1381.pdf
|
work_keys_str_mv |
AT baopingguo tradeeffectsbasedongeneralequilibrium |
_version_ |
1725175661435289600 |