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Unpublished Paper
Learning Heckscher-Ohlin Model in Five Easy Steps
(2013)
  • Omer Gokcekus, Seton Hall University
  • Kevin Bengyak, Seton Hall University
Abstract

With students in the policy and business schools with no formal economics background in mind, we propose an intuitively appealing and simple step-by-step graphical approach to explain the Heckscher-Ohlin (HO) model. Our approach is simple because it needs only two pieces of information, specifically about factor endowments and factor intensities, and from there it uses straightforward logic to construct the HO model. In easy five steps we show how to build the HO model and derive its three theorems, specifically, pattern of trade, factor price equalization, and income distribution.

Keywords
  • Heckscher-Ohlin theory,
  • teaching economics
Publication Date
February, 2013
Citation Information
Omer Gokcekus and Kevin Bengyak. "Learning Heckscher-Ohlin Model in Five Easy Steps" (2013)
Available at: http://works.bepress.com/omer_gokcekus/43/