A Modified Heckscher-Ohlin Theorem under Quasi-Linear Utility Functions
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.
GSE, Kobe University
Research Institute for Economics and Business Administration
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