Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences


Proceedings of the 3rd International Conference on Business and Policy Studies

Series Vol. 67 , 05 January 2024


Open Access | Article

The Heckscher-Ohlin Model in Modern International Trade

Runlin Lu * 1
1 University of Florida

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 67, 26-31
Published 05 January 2024. © 05 January 2024 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Runlin Lu. The Heckscher-Ohlin Model in Modern International Trade. AEMPS (2024) Vol. 67: 26-31. DOI: 10.54254/2754-1169/67/20241255.

Abstract

The Heckscher-Ohlin model, initially developed by Elie Heckscher and Bertil Ohlin, remains a cornerstone of international economics. This paper evaluates the model's relevance in the context of contemporary global trade dynamics, with a specific focus on how changes in relative factor abundance among countries continue to influence long-term trade patterns. By combining historical perspectives with modern insights, this study seeks to provide a comprehensive understanding of the model's applicability in today's interconnected world. While empirical research continues to validate its core principles, the study also acknowledges the complexities of real-world trade, including technological advancements, trade policies, and non-homogeneous factors of production. In conclusion, the Heckscher-Ohlin model remains an invaluable tool for understanding international trade, but its effective application requires an integrated approach that considers the multifaceted nature of today's global economy, guiding policymakers and businesses in navigating the evolving landscape of international trade.

Keywords

Heckscher-Ohlin Model, Factor Intensity Reversal, Policy Recommendations, Trade Policy

References

1. Ernst, D. (2002). "Global production networks and the changing geography of innovation systems: Implications for developing countries." Economics of Innovation and New Technology, 11(6), 497-523.

2. Kim, L. (1997). "Imitation to Innovation: The Dynamics of Korea's Technological Learning." Harvard Business Press.

3. Helpman, E., Melitz, M. J., & Rubinstein, Y. (2008). "Estimating trade flows: Trading partners and trading volumes." The Quarterly Journal of Economics, 123(2), 441-487.

4. Harrison, A., & Rodríguez-Clare, A. (2010). "Trade, foreign investment, and industrial policy for developing countries." Handbook of Development Economics, 5, 4039-4214.

5. Markusen, J. R. (1983). "Factor movements and commodity trade as complements." Journal of International Economics, 14(3-4), 341-356.

6. Veenstra, A. W., & Wilson, W. W. (2018). "Trade specialization patterns: The Heckscher-Ohlin-Ricardo Model versus the competitive advantage model." Canadian Journal of Economics/Revue canadienne d'économique, 51(1), 110-139.

7. Krugman, P. R., & Obstfeld, M. (2018). "International Economics: Theory and Policy." Pearson.

8. Feenstra, R. C., & Taylor, A. M. (2021). "International Trade." Worth Publishers.

9. Goldberg, P. K., & Pavcnik, N. (2007). "Distributional effects of globalization in developing countries." Journal of Economic Literature, 45(1), 39-82.

10. Baldwin, R. E. (2016). "The Great Convergence: Information Technology and the New Globalization." Harvard University Press.

11. Melitz, M. J. (2003). "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity." Econometrica, 71(6), 1695-1725.

12. Helpman, E. (2017). "Globalization and Inequality." Harvard University Press.

13. Acemoglu, D., & Autor, D. (2011). "Skills, tasks and technologies: Implications for employment and earnings." Handbook of Labor Economics, 4, 1043-1171.

14. Grossman, G. M., & Helpman, E. (1991). "Innovation and Growth in the Global Economy." MIT Press.

15. Rodrik, D. (2001). "The Global Governance of Trade As If Development Really Mattered." UNDP Human Development Report Office Background Paper, 21.

16. Anderson, J. E., & Van Wincoop, E. (2004). "Trade costs." Journal of Economic Literature, 42(3), 691-751.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).

Volume Title
Proceedings of the 3rd International Conference on Business and Policy Studies
ISBN (Print)
978-1-83558-265-7
ISBN (Online)
978-1-83558-266-4
Published Date
05 January 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/67/20241255
Copyright
05 January 2024
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated