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In economics, the Leontief's paradox is that a country with a higher capital per worker has a lower capital/labor ratio in exports than in imports. This econometric finding was the result of Wassily W. Leontief's attempt to test the Heckscher–Ohlin theory ("H–O theory") empirically.
Jul 17, 2021 · Wassily Leontief was a Nobel Prize-winning economist who developed input-output analysis and discovered the Leontief Paradox. The Leontief Paradox challenges the Heckscher-Ohlin Theorem by showing that countries may export goods that are not their comparative advantage.
Leontief Paradox is the contradiction between the H.O. theory of comparative advantage and the empirical finding that the U.S. exports labour intensive goods and imports capital intensive goods. The article reviews the possible explanations based on labour productivity, factor reversals, natural resources, trade policy and other factors.
Mar 22, 2024 · The Leontief Paradox is an empirical contradiction to the Heckscher-Ohlin theorem in international trade theory. It shows that a country can export goods that use its scarce factors intensively and import goods that use its abundant factors intensively.
The Leontief Paradox is the empirical finding that capital-abundant countries export labour-intensive goods and vice versa. This article discusses the evidence, criticisms and reconciliations of this paradox with the Heckscher-Ohlin theory of trade.
Apr 2, 2024 · Learn about the Leontief paradox, an economic concept that challenges the Heckscher-Ohlin model of international trade. Find out how it explains the contradiction between the trade patterns and the resources of countries, and see some examples and FAQs.
Overview. Leontief paradox. Quick Reference. The observation by Wassily Leontief (1906–1999) that in spite of being the world's most capital-rich country, the US appeared on average to have exports that were slightly more labour-intensive than its imports.
