CH04资源和贸易：赫克歇尔俄林模型课件.ppt

1、Chapter 4Resources and Trade:The Heckscher-Ohlin Model1IntroductionA Model of a Two-Factor EconomyEffects of International Trade Between Two-Factor EconomiesEmpirical Evidence on the Heckscher-Ohlin ModelSummaryAppendix:Factor Prices,Goods Prices,and Input ChoicesChapter Organization2IntroductionIn

2、the real world,while trade is partly explained by differences in labor productivity,it also reflects differences in countries resources.The Heckscher-Ohlin theory:Emphasizes resource differences as the only source of tradeShows that comparative advantage is influenced by:Relative factor abundance(re

3、fers to countries)Relative factor intensity(refers to goods)Is also referred to as the factor-proportions theory3Assumptions of the ModelAn economy can produce two goods,cloth and food.The production of these goods requires two inputs that are in limited supply;labor(L)and land(T).Production of food

4、 is land-intensive and production of cloth is labor-intensive in both countries.Perfect competition prevails in all markets.A Model of a Two-Factor Economy4/Input combinations that produce one calorie of foodUnit land input aTF,in acres per calorieUnit land input aLF,in hours per calorieA Model of a

5、 Two-Factor EconomyFigure 4-1:Input Possibilities in Food Production5Factor Intensity In a world of two goods(cloth and food)and two factors(labor and land),food production is land-intensive,if at any given wage-rental ratio the land-labor ratio used in the production of food is greater than that us

6、ed in the production of cloth:TF/LF TC/LC Example:If food production uses 80 workers and 200 acres,while cloth production uses 20 workers and 20 acres,then food production is land-intensive and cloth production is labor-intensive.A Model of a Two-Factor Economy6CCFFWage-rental ratio,w/rLand-laborrat

7、io,T/LA Model of a Two-Factor EconomyFigure 4-2:Factor Prices and Input Choices7Factor Prices and Goods PricesStolper-Samuelson Theorem(effect):If the relative price of a good increases,holding factor supplies constant,then the nominal and real return(in terms of both goods)to the factor used intens

8、ively in the production of that good increases,while the nominal and real return(in terms of both goods)to the other factor decreases.The reverse is also true.A Model of a Two-Factor Economy8SSRelative price ofcloth,PC/PFWage-rentalratio,w/rA Model of a Two-Factor EconomyFigure 4-3:Factor Prices and

9、 Goods Prices9FFCCSSLand-labor Ratio,T/LRelativeprice ofcloth,PC/PFWage-rentalratio,w/r(PC/PF)1(TC/LC)2(TC/LC)1(TF/LF)2(TF/LF)1(w/r)2(w/r)1IncreasingIncreasingA Model of a Two-Factor EconomyFigure 4-4:From Goods Prices to Input Choices(PC/PF)210An increase in the price of cloth relative to that of f

10、ood,PC/PF,will:Raise the income of workers relative to that of landowners,w/r.Raise the ratio of land to labor,T/L,in both cloth and food production and thus raise the marginal product of labor in terms of both goods.Raise the purchasing power of workers and lower the purchasing power of landowners,

11、by raising real wages and lowering real rents in terms of both goods.A Model of a Two-Factor Economy11Resources and OutputHow is the allocation of resources determined?Given the relative price of cloth and the supplies of land and labor,it is possible to determine how much of each resource the econo

12、my devotes to the production of each good.A Model of a Two-Factor Economy12LFTFLCTCLabor used in food productionLabor used in cloth productionOFIncreasingIncreasingIncreasingIncreasingLand used in cloth productionLand used in food production1FCOCA Model of a Two-Factor EconomyFigure 4-5:The Allocati

13、on of Resources13How do the outputs of the two goods change when the economys resources change?Rybczynski Theorem(effect):If a factor of production(T or L)increases,then the supply of the good that uses this factor intensively increases and the supply of the other good decreases for any given commod

14、ity prices.The reverse is also true.A Model of a Two-Factor Economy14CL2FL2CT1FT1CF1L1FL1CT2FT2C1A Model of a Two-Factor EconomyFigure 4-6:An Increase in the Supply of LandLabor used in food productionLabor used in cloth productionIncreasingIncreasingIncreasingIncreasingLand used in cloth production

15、Land used in food productionF2O1FO2F2OC15TT1TT2Output offood,QFOutput ofcloth,QCSlope=-PC/PFSlope=-PC/PF2Q2FQ2C1Q1FQ1CA Model of a Two-Factor EconomyFigure 4-7:Resources and Production Possibilities16An increase in the supply of land(labor)leads to a biased expansion of production possibilities towa

16、rd food(cloth)production.The biased effect of increases(decreases)in resources on production possibilities is the key to understanding how differences in resources give rise to international trade.An economy will tend to be relatively effective at producing goods that are intensive in the factors wi

17、th which the country is relatively well-endowed.A Model of a Two-Factor Economy17Assumptions of the Heckscher-Ohlin model:There are two countries(Home and Foreign)that have:Same tastes Same technology Different resources Home has a higher ratio of labor to land than Foreign doesEach country has the

18、same production structure of a two-factor economy.Effects of International Trade Between Two-Factor Economies18Relative Prices and the Pattern of TradeFactor Abundance Home country is labor-abundant compared to Foreign country(and Foreign is land-abundant compared to Home)if and only if the ratio of

19、 the total amount of labor to the total amount of land available in Home is greater than that in Foreign:L/T L*/T*Example:if America has 80 million workers and 200 million acres,while Britain has 20 million workers and 20 million acres,then Britain is labor-abundant and America is land-abundant.In t

20、his case,the scarce factor in Home is land and in Foreign is labor.Effects of International Trade Between Two-Factor Economies19When Home and Foreign trade with each other,their relative prices converge.The relative price of cloth rises in Home and declines in Foreign.In Home,the rise in the relativ

21、e price of cloth leads to a rise in the production of cloth and a decline in relative consumption,so Home becomes an exporter of cloth and an importer of food.Conversely,the decline in the relative price of cloth in Foreign leads it to become an importer of cloth and an exporter of food.Effects of I

22、nternational Trade Between Two-Factor Economies20RDRSRS*123Effects of International Trade Between Two-Factor EconomiesFigure 4-8:Trade Leads to a Convergence of Relative PricesRelative price of cloth,PC/PFRelative qualityof cloth,QC+Q*C QF+Q*F21Heckscher-Ohlin Theorem:A country will export that comm

23、odity which uses intensively its abundant factor and import that commodity which uses intensively its scarce factor.Effects of International Trade Between Two-Factor Economies22Trade and the Distribution of IncomeTrade produces a convergence of relative prices.Changes in relative prices have strong

24、effects on the relative earnings of labor and land in both countries:In Home,where the relative price of cloth rises:Laborers are made better off and landowners are made worse off.In Foreign,where the relative price of cloth falls,the opposite happens:Laborers are made worse off and landowners are m

25、ade better off.Owners of a countrys abundant factors gain from trade,but owners of a countrys scarce factors lose.Effects of International Trade Between Two-Factor Economies23Difference between the specific factors model and the Heckscher-Ohlin model in terms of income distribution effects:The speci

26、ficity of factors to particular industries is often only a temporary problem.Example:Garment makers cannot become computer manufactures overnight,but given time the U.S.economy can shift its manufacturing employment from declining sectors to expanding ones.In contrast,effects of trade on the distrib

27、ution of income among land,labor,and capital are more or less permanent.Effects of International Trade Between Two-Factor Economies24Factor Price EqualizationIn the absence of trade:labor would earn less in Home than in Foreign,and land would earn more.Factor-Price Equalization Theorem:International

28、 trade leads to complete equalization in the relative and absolute returns to homogeneous factors across countries.It implies that international trade is a substitute for the international mobility of factors.Effects of International Trade Between Two-Factor Economies25Has international trade equali

29、zed the returns to homogeneous factors in different countries in the real world?Even casual observation clearly indicates that it has not.Example:Wages are much higher for doctors,engineers,technicians,mechanics and laborers in the United States and Germany than in Korea and Mexico.Under these circu

30、mstances,it is more realistic to say that international trade has reduced,rather than completely eliminated,the international difference in the returns to homogeneous factors.Effects of International Trade Between Two-Factor Economies26Effects of International Trade Between Two-Factor EconomiesTable

31、 4-1:Comparative International Wage Rates(United States=100)27Three assumptions crucial to the prediction of factor price equalization are in reality untrue:Both countries produce both goods Both countries have the same technologies in production Both countries have the same prices of goods due to t

32、radeOne thing the factor-price equalization theorem does not say is that international trade will eliminate or reduce international differences in per capita incomes.Effects of International Trade Between Two-Factor Economies28Effects of International Trade Between Two-Factor EconomiesTable 4-2:Comp

33、osition of Developing-Country Exports (Percent of Total)29Testing the Heckscher-Ohlin ModelTests on U.S.Data Leontief paradox Leontief found that U.S.exports were less capital-intensive than U.S.imports,even though the U.S.is the most capital-abundant country in the world.Tests on Global Data A stud

34、y by Bowen,Leamer,and Sveikauskas tested the Heckscher-Ohlin model using data for a large number of countries.This study confirms the Leontief paradox on a broader level.Empirical Evidence on the Heckscher-Ohlin Model30Table 4-3:Factor Content of U.S.Exports and Imports for 1962Empirical Evidence on

35、 the Heckscher-Ohlin Model31Empirical Evidence on the Heckscher-Ohlin ModelTable 4-4:Testing the Heckscher-Ohlin Model32Tests on North-South Trade North-South trade in manufactures seems to fit the Heckscher-Ohlin theory much better than the overall pattern of international trade.The Case of the Mis

36、sing Trade A study by Trefler in 1995 showed that technological differences across a sample of countries are very large.Empirical Evidence on the Heckscher-Ohlin Model33Empirical Evidence on the Heckscher-Ohlin ModelTable 4-5:Trade Between the United States and South Korea,1992(million dollars)34Emp

37、irical Evidence on the Heckscher-Ohlin ModelTable 4-6:Estimated Technological Efficiency,1983(United States=1)35Implications of the TestsEmpirical evidence on the Heckscher-Ohlin model has led to the following conclusions:It has been less successful at explaining the actual pattern of international

38、trade.It has been useful as a way to analyze the effects of trade on income distribution.Empirical Evidence on the Heckscher-Ohlin Model36The Heckscher-Ohlin model,in which two goods are produced using two factors of production,emphasizes the role of resources in trade.A rise in the relative price o

39、f the labor-intensive good will shift the distribution of income in favor of labor:The real wage of labor will rise in terms of both goods,while the real income of landowners will fall in terms of both goods.Summary37For any given commodity prices,an increase in a factor of production increases the

40、supply of the good that uses this factor intensively and reduces the supply of the other good.The Heckscher-Ohlin theorem predicts the following pattern of trade:A country will export that commodity which uses intensively its abundant factor and import that commodity which uses intensively its scarc

41、e factor.Summary38SummaryThe owners of a countrys abundant factors gain from trade,but the owners of scarce factors lose.In reality,complete factor price equalization is not observed because of wide differences in resources,barriers to trade,and international differences in technology.Empirical evid

42、ence is mixed on the Heckscher-Ohlin model.Most researchers do not believe that differences in resources alone can explain the pattern of world trade or world factor prices.39/Units of land used to produce one calorie of food,aTFUnits of labor used to produce one calorie of food,aLF1Isocost linesApp

43、endix:Factor Prices,Goods Prices,and Input ChoicesFigure 4A-1:Choosing the Optimal Land-Labor Ratio40/12Appendix:Factor Prices,Goods Prices,and Input ChoicesFigure 4A-2:Changing the Wage-Rental RatioUnits of land used to produce one calorie of food,aTFUnits of labor used to produce one calorie of fo

44、od,aLFSlope=-(w/r)2Slope=-(w/r)141FFCCSlope=-(w/r)Appendix:Factor Prices,Goods Prices,and Input ChoicesFigure 4A-3:Determining the Wage-Rental RatioLand inputLabor input42FFCC1Slope=-(w/r)1CC2Slope=-(w/r)2Appendix:Factor Prices,Goods Prices,and Input ChoicesFigure 4A-4:A Rise in the Price of ClothLa

45、nd inputLabor input43Chapter 4Resources and Trade:The Heckscher-Ohlin Model44IntroductionA Model of a Two-Factor EconomyEffects of International Trade Between Two-Factor EconomiesEmpirical Evidence on the Heckscher-Ohlin ModelSummaryAppendix:Factor Prices,Goods Prices,and Input ChoicesChapter Organi

46、zation45IntroductionIn the real world,while trade is partly explained by differences in labor productivity,it also reflects differences in countries resources.The Heckscher-Ohlin theory:Emphasizes resource differences as the only source of tradeShows that comparative advantage is influenced by:Relat

47、ive factor abundance(refers to countries)Relative factor intensity(refers to goods)Is also referred to as the factor-proportions theory46Assumptions of the ModelAn economy can produce two goods,cloth and food.The production of these goods requires two inputs that are in limited supply;labor(L)and la

48、nd(T).Production of food is land-intensive and production of cloth is labor-intensive in both countries.Perfect competition prevails in all markets.A Model of a Two-Factor Economy47/Input combinations that produce one calorie of foodUnit land input aTF,in acres per calorieUnit land input aLF,in hour

49、s per calorieA Model of a Two-Factor EconomyFigure 4-1:Input Possibilities in Food Production48Factor Intensity In a world of two goods(cloth and food)and two factors(labor and land),food production is land-intensive,if at any given wage-rental ratio the land-labor ratio used in the production of fo

50、od is greater than that used in the production of cloth:TF/LF TC/LC Example:If food production uses 80 workers and 200 acres,while cloth production uses 20 workers and 20 acres,then food production is land-intensive and cloth production is labor-intensive.A Model of a Two-Factor Economy49CCFFWage-re