Leontief paradox
E541650
The Leontief paradox is a famous empirical finding in international economics showing that U.S. trade patterns contradicted the predictions of the Heckscher–Ohlin model by appearing to export labor-intensive rather than capital-intensive goods.
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
empirical finding in international economics
ⓘ
paradox in international trade theory ⓘ |
| author | Wassily Leontief NERFINISHED ⓘ |
| basedOn |
1947 U.S. data
ⓘ
U.S. trade data ⓘ input–output analysis ⓘ |
| contradicts |
Heckscher–Ohlin model
NERFINISHED
ⓘ
prediction that capital-abundant countries export capital-intensive goods ⓘ prediction that capital-abundant countries import labor-intensive goods ⓘ |
| coreConcept |
capital–labor ratio in trade
ⓘ
comparative advantage ⓘ factor content of exports ⓘ factor content of imports ⓘ |
| countryStudied | United States NERFINISHED ⓘ |
| field |
econometrics
ⓘ
international economics ⓘ international trade ⓘ |
| hasExplanation |
distinction between skilled and unskilled labor
ⓘ
factor intensity reversals ⓘ measurement of capital and labor ⓘ natural resource abundance in U.S. imports ⓘ technological differences between countries ⓘ trade barriers and tariffs ⓘ |
| influenced |
empirical research on trade patterns
ⓘ
human capital models of trade ⓘ new trade theory NERFINISHED ⓘ tests of factor price equalization ⓘ |
| namedAfter | Wassily Leontief NERFINISHED ⓘ |
| publishedIn | Domestic Production and Foreign Trade: The American Capital Position Re-examined NERFINISHED ⓘ |
| relatedTo |
Heckscher–Ohlin theorem
NERFINISHED
ⓘ
capital intensity ⓘ factor endowments ⓘ factor proportions theory ⓘ labor intensity ⓘ |
| shows |
U.S. exports appeared more labor-intensive than imports
ⓘ
U.S. imports appeared more capital-intensive than exports ⓘ |
| status |
controversial result
ⓘ
empirical puzzle ⓘ |
| suggests |
U.S. had a relative abundance of skilled labor
ⓘ
importance of factor quality, not just quantity ⓘ role of human capital in trade patterns ⓘ |
| testedBy |
factor content of trade analysis
ⓘ
input–output tables ⓘ |
| usedToCritique | simple two-factor Heckscher–Ohlin model ⓘ |
| usedToMotivate |
models with human capital and skills
ⓘ
models with technology differences ⓘ multi-factor trade models ⓘ |
| yearProposed | 1953 ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.