Tag Archives | The Rybczynski Theorem (RT)

The Rybczynski Theorem (With Criticisms) | International Economics

In this article we will discuss about the Rybczynski theorem of international trade with its criticisms. In both Heckscher-Ohlin theory and the factor- price equalisation theory, the assumption was taken that the factor endowments were fixed. T.M. Rybczynski, published a paper in 1955 to investigate the effect of an increase in the quantity of a factor of production upon production, [...]

By Aahana S|2018-03-15T11:34:36+05:30March 15, 2018|The Rybczynski Theorem|Comments Off

The Rybczynski Theorem (RT) (With Diagram) | Economics

The Rybczynski Theorem (RT) says that if the endowment of some resource increases, the industry that uses that resource most intensively will increase its output while the other industry will decrease its output. The relative factor intensity is measured by the ratio of factor use in each industry. The theorem suggests that unbalanced growth in factor supplies tends, at constant [...]

By Anushree A|2017-03-04T14:07:50+05:30March 4, 2017|Theorems|Comments Off