Working Paper: NBER ID: w2515
Authors: Robert W. Staiger
Abstract: This paper derives statements of the Heckscher-Ohlin Theorem which remain valid in the presence of market power. Following Helpman (1 984a), the paper explores restrictions on permissible trade patterns that are implied by the post-trade equilibrium conditions of Heckscher- Ohlin theory. Restrictions on the patterns of commodity trade are derived to complement Helpman's factor content version of the competitive Heckscher-Ohlin theory, and the introduction of factor market power is shown to leave the validity of these restrictions unaffected, Restrictions on the pattern of Heckscher-Ohlin trade in the presence of product market power are also derived, and conditions are stated under which Helpman's competitive factor content restrictions continue to hold.
Keywords: Heckscher-Ohlin; International Trade; Market Power
JEL Codes: F11; F12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market power (L11) | Heckscher-Ohlin restrictions (F11) |
| imperfectly competitive product markets (L13) | Helpman's conditions (F16) |
| market structure (D49) | trade patterns (F10) |