The trade and labor nexus is examined with a model incorporating refinements which weaken the H-O-S result that free trade can cause factor rewards to equalize. Asian growth and rising openness in the period 1970-1992, taken in isolation, are found to confer net benefits in the older...

This paper introduces a new duality concept, factor income function, in order to establish the factor Price Equalization theorem and the Heckscher-Ohlin theorem in an oligopolistic Heckscher-Ohlin model with increasing returns to scale