Stolper-Samuelson Theorem

Stolper-Samuelson theorem in Global Commerce Policy

In this regard, stolper-samuelson theorem is: a proposition put forward in 1941 by the economists Wolfgang Stolper and Paul Samuelson. The entries on trade policy are here. It shows that under certain assumptions (importantly that land and labour are the only factors of production) a move from no trade to free trade results in increasing income going to the factor of production used intensively in the export industry experiencing rising prices. Conversely, such a move would result in decreasing returns for the factor used intensively in the industry subject to falling prices. See also comparative advantage, Heckscher-Ohlin theorem and Leontief Paradox.[1]

Stolper-Samuelson theoremin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Stolper-Samuelson theorem” entry (OAS)

See Also