NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Heckscher-Olin Theory and Non-Competitive Markets

Robert W. Staiger

NBER Working Paper No. 2515
Issued in February 1988
NBER Program(s):ITI, IFM

This paper derives statements of the Heckscher-Ohlin Theorem which remain valid in the presence of market power. Following Helpman (1 984a), the paper explores restrictions on permissible trade patterns that are implied by the post-trade equilibrium conditions of Heckscher- Ohlin theory. Restrictions on the patterns of commodity trade are derived to complement Helpman's factor content version of the competitive Heckscher-Ohlin theory, and the introduction of factor market power is shown to leave the validity of these restrictions unaffected, Restrictions on the pattern of Heckscher-Ohlin trade in the presence of product market power are also derived, and conditions are stated under which Helpman's competitive factor content restrictions continue to hold.

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Document Object Identifier (DOI): 10.3386/w2515

Published: European Economic Review, February/March 1987.

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