国际经济学珍藏版4

Ⅲ. Empirical Evidence on the ቤተ መጻሕፍቲ ባይዱ-O Model
ⅰ. Comparative International Wage Rates
See table 4-1 on Page 78, the practical data are inconsistent with Factor-Equalization Theorem. The reasons include 3 points.
International Economics
Chapter 4 Resources and Trade: The H-O Model
Main Contents
A Model of A Two-Factor Economy Effects of International Trade Between TwoFactor Economies Empirical Evidence on the H-O Model
In the production of apples T/L=1/2
In the production of shoes T/L=1/5
In the production of computer T/L=1/10
Exercise: P87.1
ⅱ. Factor Prices and Goods Prices
technology
Tastes
ⅱ. The pattern of trade
①How to judge the factor abundance Home:20 million workers, 20 millions acres land 1:1 Foreign:80 million workers, 200 million acres land 1:2.5 Conclusion:Home’s labor-abundant; Foreign’s land-abundant.
Ⅰ. A Model of A Two-Factor Economy
ⅰ. Assumption: 2× 2
two factors: L(labor), T(land) two goods: C(cloth), F(food)
aLC , aTC; aLF, aTF; w; r
L=LC+LF= LC(wC)+LF(wF) T=TC+TF=TC(rC)+TF(rF)
ⅱ. Leontief paradox
Some new theories can explain Leontief paradox.
1. Assume that only two countries, A and B, exist. Consider the following data: Countries Factor Endowments A B
(w/r)*
C
F (T/L)CC
(T/L)FF
T/L
When w/r = (w/r)*, (T/L)CC ＜ (T/L)FF
Cotton is labor-intensive. Food is land-intensive.
How to judge factor intensity in producing a good?
Recall the former two models:
the pattern of trade: comparative advantage the base of trade: international difference in the productivity of labor the effects of trade on income distribution: the factor specific to exports: better off the factor specific to imports: worse off the mobile factor: uncertain
L
LF
QF
T
TC
TF
T
QC
LC L
Suppose T increases, L2F
L1F
Q 2F Q 1F T1F
T2C
T1C
QC
1 2
T2F
L2C
L1C
LC , TC T LF , TF
QF
The production possibility frontier in the Two-Factor Economy
Results2: the effects on income distribution
The owner of labor: better off Home The owner of land: worse off The owner of labor: worse off Foreign The owner of land: better off Conclusion: owners of a country’s abundant factors gain from trade, but owners of a country’s scarce factors lose. P77
Essay Questions
“No country is abundant in everything.” Discuss.
the concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than does the other country. If one country has more capital worker than another, it is an arithmetic impossibility that it also has more workers per unit capital.
ⅲ. Resources and Output
LF: labor used in food production
TF: land used in food production
TC:land used in cotton production LC : labor used in cotton production
W/r L becomes relatively more expensive T becomes relatively more expensive
The cost of cotton becomes higher
The cost of food becomes higher
PC/PF
W/r
PC/PF
export cotton
export cloth
Conclusion: Countries tend to export goods whose production is intensive in factors with which they are abundantly endowed. P76
QF Q 2F
2 slope=--PC/PF
Q 1F
1
slope=--PC/PF
Q2C Q1C
QC
Conclusion:P75
Generally, an economy will tend to be relatively effective at producing goods that are intensive in the factors with which the country is relatively well-endowed.
Which deals with the effect of trade on factors prices
ⅰ.Assumptions
① 2× 2× 2; ② Both nations use the same technology in production; ③ Both nations produce both goods; ④ Trade actually equalizes the prices of goods in the 2 nations; ⑤ Others: tastes,transportation costs,tariffs,……
PC/PF
S w/r
C
F S C F
w/r
T/L
w/r
C
S
F
C PC/PF
S
F
T/L
①
Goods Prices
Factor Prices
Input Combination T/L
PC/PF
② PC/PF
w/r
The owner of labor: better off The owner of land: worse off
Ⅱ. Effects of International Trade Between Two-Factor Economies
H-O Theorem
Which deals with the pattern of trade The H-O Theory
Factor-Price Equilibrium Theorem
②The production possibility frontiers of Home and Foreign C is L-intensive, H is L-abundant; F is T-intensive, F is T-abundant.
QF
PPF of Home
Q`F PPF of Foreign
QC
Q`C
③ The pattern of trade and the effects of trade
RS* PC/PF
RD
F W H
RSW RS
(QC+Q*C)/(QF+Q*F)
Results1: the pattern of trade
Home: QC/QF
Foreign:Q*C/Q*F
General Equilibrium Framework of The H-O Model
Commodity prices
Factor prices
Derived demand for factors Demand for final commodities Supply of factors Distribution of ownership of factors
W/r is high
W/r is low
L is relatively expensive Much T will be used
T is relatively expensive
More L will used
T/L will be higher
T/L will be lower
w/r
C F
ⅲ. Factor Prices Equalization
Trade actually equalizes the relative prices in the 2 nations: PC/PF = (PC/PF)W = P*C/P*F
PC/PF
w/r So the equalized good prices result in the equalization of factor prices.
Labor Force 45 20 Capital Stock 15 10 If good S is capital intensive, then following the Heckscher-Ohlin Theory, A. B. C. D. E. country A will export good S. country B will export good S. both countries will export good S. trade will not occur between these two countries. Insufficient information is given. Answer: B
Key terms
Abundant factor scarce factor Factor abundance Factor intensity Biased expansion of production possibility Factor proportions theory Heckcher-Ohlin Model Leontief paradox