Other articles where leontief paradox is discussed: wassily leontief:also is known for the “leontief paradox” economists had previously held that a country’s exports reflect the commodity most abundant in that country—ie, labour or capital. Leontief paradox summary of leontief paradox derived from a study by wassily leontief of us trade statistics, commencing in 1947 and spanning twenty-five years, which revealed that capital/labor ratios of us exports were lower than those of imports during the same time span.
The discussion of the leontief paradox has hardly been able to establish firm conclusions it has provided a good deal of insight into the foreign trade position of the us, but it has hardly helped to establish or refute the ho theory of international trade. Leontief died in new york city on friday, february 5, 1999 at the age of 93 his wife died in 2005 major contributions leontief is credited with developing early contributions to input-output analysis and earned the nobel prize in economics for his development of its associated theory.
Leontief paradox wassily leontief received a nobel prize in 1973 for his contribution to the input-output analysis three of his students, paul samuelson, robert solow and vernon smith also received nobel prizes. In wassily leontiefalso is known for the “leontief paradox” economists had previously held that a country’s exports reflect the commodity most abundant in that country—ie, labour or capital. In this video i give a brief explanation of the hecksher-ohlin theory and the leontief paradox the heckscher-ohlin theory of trade predicts patterns of trad. The leontief paradox and the new trade theory the leontief paradox seemingly undermined the factor proportions theory of international trade and stimulated additional research that has improved our understanding of how trade takes place in theory and in practice.
Leontief himself made an attempt to resolve this paradox by claiming that us labour was far more productive than that of the countries from which us got its imports as such, if input of us labour was adjusted (that is, multiplied) by a factor of three, us would be ranked as a labour-abundant country. Result: leontief reached a paradoxical conclusion that the us—the most capital abundant country in the world by any criterion—exported labor-intensive commodities and imported capital- intensive commodities this result has come to be known as the leontief paradox.
Leontief's paradox in economics is that a country with a higher capital per worker has a lower capital/labor ratio in exports than in imports this econometric find was the result of wassily w leontief 's attempt to test the heckscher–ohlin theory (h–o theory) empirically. This entry about leontief paradox has been published under the terms of the creative commons attribution 30 (cc by 30) licence, which permits unrestricted use and reproduction, provided the author or authors of the leontief paradox entry and the encyclopedia of law are in each case credited as the source of the leontief paradox entry. In this video i give a brief explanation of the hecksher-ohlin theory and the leontief paradox the heckscher-ohlin theory of trade predicts patterns of trade based on nations' relative factor.
Wp travis explains the leontief paradox with the help of us trade policy he refers to the fact that us trade is highly protected, a fact even more true when leontief made his study than it is today.