Archive | The Rybczynski Theorem

In this article we will discuss about the Rybczynski theorem of international trade with its criticisms. In both Heckscher-Ohlin theory and the factor- price equalisation theory, the assumption was taken that the factor endowments were fixed. T.M. Rybczynski, published a paper in 1955 to investigate the effect of an increase in the quantity of a factor of production upon production, [...]