Title

A Modified Heckscher-Ohlin Theorem under Quasi-Linear Utility Functions

Abstract

Constructing a two-country, two-good, two-factor model of international trade under quasi-linear utility functions, we obtain a Modified Heckscher-Ohlin (MHO) Theorem that relates the trade pattern to the international distribution of factor endowments. We also show that the MHO Theorem survives imperfect competition and increasing returns.


JEL Classification Numbers: F 10, F 12.
Keywords: The Modified Heckscher-Ohlin Theorem, quasi-linear utility function, imperfect competition, increasing returns to scale.

Kenji FUJIWARA
GSE, Kobe University

Koji SHIMOMURA
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: (81) 78 803 7036
Fax: (81) 78 803 7059