Leontief Paradox
Quick Summary
The Leontief Paradox, identified by economist Wassily Leontief, challenges the Heckscher-Ohlin theory of international trade. This theory posits that countries export goods that utilize their abundant factors of production (like capital or labor) and import goods that use their scarce factors.1234
However, Leontief found that U.S. exports were more labor-intensive than its imports, despite the U.S. being considered capital-abundant. This finding contradicted the Heckscher-Ohlin prediction and became known as the Leontief Paradox. The paradox suggests that factors other than simple capital and labor endowments, such as technology or human capital, may play a more significant role in determining trade patterns.1234
Ask Britannica AI about this topic
Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.
international tradeFactor endowments: the Heckscher-Ohlin theory…they are known as the Leontief Paradox.
Read More…they are known as the Leontief Paradox.
Read More
economicsInternational economics…intensive, became known as the Leontief Paradox because it disputed the Heckscher-Ohlin theory. Recent efforts in international economics have attempted to refine the Heckscher-Ohlin model and test it on a wider range of empirical evidence.
Read More…intensive, became known as the Leontief Paradox because it disputed the Heckscher-Ohlin theory. Recent efforts in international economics have attempted to refine the Heckscher-Ohlin model and test it on a wider range of empirical evidence.
Read More- Heckscher-Ohlin theory
…they are known as the Leontief Paradox.
Read More…they are known as the Leontief Paradox.
Read More