Cheng, Wenli; Sachs, Jeffrey; Yang, Xiaokai - In: Economic Theory 23 (2004) 3, pp. 671-688
This paper introduces technological differences and transaction costs into the Heckscher-Ohlin (HO) model and examines the HO theorem, factor price equalization theorem, the Stolper-Samuelson theorem and the Rybczynski theorem. It shows that the HO theorem can be refined, and that the factor...