Theory of Hekscher Olin International Economics. The theory of the ratio of the factors of the production of Hexcher-Olin. Characteristics of Protectionism and Freedom of Trade

Hekscher-Olin theory complements the theory of comparative advantages by D. Ricardo.

Hekscher-Olin theory argues that the country exports goods to make a relatively redundant factor of production, and imports of which requires relative to scarce resources. The theory of Hekscher Olin complements the theory of comparative advantages by D. Ricardo and explains what their source (in the redundancy of some resources and the shortage of others).

Suppose that the country X has large land resources with a small population density. As a result, the land for keeping agriculture It will be less deficient resource than the rest of the world, and in labor resources there will be a shortage. In such conditions, according to the theory of Hexcher-Olin, the country will export "earthmont" products, and import labor-intensive (in Russia, natural resources are a relative excessive factor of production, and labor is relatively scarce, which leads us to the export of raw materials and the import of laborious goods).

In general, this theory is confirmed by the facts, but requires certain clarifications (which revealed Leontian paradox). In particular, accounting for foreign trade policies of the state and the heterogeneity of production factors (for example, labor is qualified and unqualified).

Paul Samuelson supplemented this theory of the theory leveling of prices for production factors. According to her, relative prices for goods involved in international Trade, gradually align. The fact is that participation in international trade causes an increase in the use of an excessive production factor. As a result, its price increases (for example, the growth of exports of labor-intensive products from China led to the growth of salaries in this country). The development of the deficit factor of production is reduced due to imports and the price falls.

Paradox Leontiev

Vasily Leontyev conducted an analysis uS foreign trade in 1947 and 1951 the US post-war economy had an excess of capital and a relative deficit of labor. In accordance with the theory of Hexcher-Olin, the US exports should grow the share of capital-intensive products, and time consuming was reduced. However, the results obtained by Leontiev showed that the share of labor-intensive goods in exports was not declined, in the share of capital-intensive goods in imports did not increase. A lot of discussions began around the paradox, during which some of its reasons were identified:

1.Skort from the United States was time consuming due to the advantages in highly qualified working power with high wageswhich relative to the rest of the world was redundant resource.

2. The horses imported a lot of raw materials, the extraction of which required high capital costs. This caused the high capital intensity of imports.

3.Shis used a tariff policy that prevents the importation of labor-intensive goods.

According to the ideas of A. Smith and D. Ricardo, the main factor affecting the production of goods - work; Its price depends on labor costs (by labor theory of value).

Later, the determining factors of production researchers considered "Earth" and capital. If the market labor price was determined the size wages, then the price of capital is the interest rate, and the price of land is the magnitude of the land rent.

In the 30s. Xx in. Swedish scientists E. Hekscherand B. Olin.developed the doctrine D. Ricardo.

The main provisions of their theory were reduced to the following:

1) In countries there is a tendency to export goods, for the manufacture of which are used in excess factors of production, and, on the contrary, import goods to produce relatively rare factors. Theory of production factors - theory explaining the production of goods from the position of the use of primary element factors of production: labor, "land", capital;

2) In international trade, under the appropriate conditions, a tendency towards the alignment of "factor prices" is trained. Under price factorsthe remuneration is meant that the owner of the factor is obtained for its use. So, for labor is the salary, for capital - the interest rate, for the Earth - the rent;

3) Exports of goods can be replaced by the movement of production factors.

Theory of Hekscher-Olin factors- The theory according to which the country exports goods, in the production of which excessive factors of production are most effectively used and imports goods with a deficit production factor.

The concept of Hexcher-Olin includes a number of provisions relating to the characteristics of the functioning of factors.

First position Adjusts a gradual decrease in the value of the limit product of each of the factors additionally included in the production. This means that with an increase, for example, the number of workers engaged in the production of goods, by 10%, the volume of product output will increase by a smaller value. A further increase in the number of workers will lead to a smaller increase in the volume of manufactured goods.

Among the economists there is no consensus on what direction the limit of the predact is changed to the additionally involved factors. D. Ricardo proceeded from the constant values \u200b\u200bof the limit product; Many of his followers argued that in some cases, especially when organizing mass production, the limit product increases.

Second position It characterizes the consumption of goods, the position of manufacturers and the change in costs. In exporter countries, the structure of consumption, tastes, the habits of the population are expected to be the same. All manufacturers are in equal conditions, have similar production capabilities. Practically unchanged tariffs, transportation costs and other production costs.

Third position There is an opportunity for the country to expand the production of goods using existing factors in excess. In the manufacturer's country, such factors will be spent in thousands of all-growing volumes, and their price is increased. In the importing country, where the need for this factor will be replaced by the consumption of the relevant product, the price of the factor will decrease.

For example, the production of wool and grain in Australia and New Zealand with their subsequent sale in the UK will mean the expansion of the use of cheap Australian and New Zealand lands under cereals and pastures. The result should be to increase the price of land in Australia and New Zealand and a decrease in land rent in the UK due to imports.

As for the "mobile factors" - labor and capital, then on the concept of Hexcher-Olin, recognizing the possibility of their movement beyond the limits of national borders, the likelihood of replacing the movement of goods by the motion of production factors is predicted. So, Germany instead of expanding the export of goods to Poland can translate its capital and build a plant, starting the production of this product in Poland.

Foreign trade in accordance with the concept of Hexcher Olin is as follows.

Suppose the simultaneous existence of two countries: "industrial" and "agrarian" (conditional names).

In the "industrial" there is an excess capital and a relatively small amount of land, so it produces industrial products; In the "agrarian", on the contrary, - the relative excess of the Earth with a lack of capital, which orients it to agriculture.

"Industrial" will be able to use the available limited land areas for production industrial goods, exchanged for imported grain and meat imported from "agrarian". The general result will be more effective use Capital and land.

There are similar and classic examples.

The neoclassical concept of Hexcher-Olin was convenient to explain the reasons for the development of trade between commodity metropolis and industrialized colonies.

The concept of Hexcher-Olin was used to explain the benefits of countries in export separate species Products in modern conditions. For example, advantages South Korea in the export of such labor-intensive goods like clothing or electronic blockswere explained by the presence of a significant excess of cheap labor, the advantages of Sweden in the export of steel industry products - the low content of phosphorus in iron ore (as a result - high-quality steel with minimal production costs), the advantages of Canada and Norway in aluminum exports were caused by geographic conditions allowing Email cheap electricity.

Raising the significance of foreign trade In the economy of industrialized countries in the late 40s - early 50s. Xx in. i demanded a decision of a number of economic and political issues.

The emergence of the "common market" caused the need to clarify the impact of the common European customs "wall" on the movement of American capital.

It was equally important to determine the impact of trade liberalization between Western European countries on the development of homogeneous industries, and, accordingly, employment in these countries. There were issues such as the effect of the elimination of foreign trade barriers on wages, the development of intra-frame trade, etc.

The neoclassical concept of Hekscher-Olin responded to the questions posed (economic and political) as follows.

Trade must be greatest and especially effective between countries with the most distinguished structure of the economy (due to various outlook production factors). Uniform production should be focused in one country.

Trade development is effective if it stimulates individual states to refuse the production of homogeneous goods, i.e. Enhances the intersectoral specialization of production.

Countries need to export goods, in the production of which relatively excess factors are maximally used. Free trade in this should equalize the prices of such factors. As a result of foreign trade, it is necessary to level wages, interest rates, rental payments, etc. International investments should be stimulated by differences in factors. Finally, interchangeability of international trade and international investment is necessary.

The incompression of these provisions with real global foreign economic development attracted the attention of researchers in the first postwar years. In the mid-50s. Xx in. In connection with the programs for the creation of a "common market" in Europe, the verification of the actual compliance of the trends in the development of foreign trade Theoretical provisions of neoclassics became particularly relevant.

In the development of a factor approach Z.B. SEA and the theory of comparative advantages of E. Hekscher and B.G. Olin justified the need to determine comparative advantages With foreign trade, based on the assessment of factors of production, their relationships and relationships. As a result, scientists have been formulated by its own theory, which called the theory of the ratio of factors.

The following postulates are based on this theory:

1. The countries participating in the international exchange develop a tendency towards the export of those goods and services, for the manufacture of which are used primarily the production factors available in excess, and, on the contrary, to the import of that products on which there is a shortage of any factors.

The country's ability to increase the production of goods attracting more factors existing in excess are proclaimed. For this reason, the consumption of such factors in the exporting country will increase, the price of them will, accordingly, will also increase due to the gradual decrease in the limiting utility indicators of each of the factors additionally included in the production. For example, an increase in the seed area under wheat by 10% will lead to a smaller increase in the production of wheat.

On the other hand, prices for a similar factor in import countries will decrease due to replacing the need for the use of this factor within the country import into its territory of goods whose production is associated with the use of this factor.

The theory is allowed that if two countries have in the same extent, all types of factors production differences in the price system can make the exchange of goods between countries possible and profitable for the parties.

2. The development of international trade leads to the alignment of "factor" prices, i.e. income received by the owner of this factor.

Such a situation is possible only in free trade conditions, resulting in prerequisites for equalizing wages, interest rates, rent, etc.

3. With sufficient international mobility of production factors, it is possible to replace the export of goods to the movement of the factors themselves between countries.

It is clear that the mobility of factors can provide only free trade, which stimulates individual countries to refuse to produce homogeneous goods and strengthens the intersectoral specialization of production in the release and export of finished products.

Conclusions of the theory of the ratio of factors of production are faithful subject to the following assumptions:

The structure of consumption in partner countries is the same, i.e. There are a coincidence of the inclinations and preferences of their population;
Manufacturers are approximately equal conditions, having the same production capabilities;
Studies the immutability of export-import tariffs, transportation costs and other costs.

Development of the Reviews of Hekscher and Olin

Later a number of economists (P. Samuelson, A. Lerner, etc.) developed this teaching, making the assumption that free trade is complete, and not just a private substitute for free overflow of capital, i.e. Free trade is able to lead to full absolute and relative alignment in production factors.

In 1948, P. Samuelson proved the theorem of leveling prices for production factors that was named theorems (gr. Theorema; Theoreo - I consider thinking about) Hekscher - Olin - Samuelson. According to this theory, international trade leads to an alignment of absolute and relative prices for homogeneous production factors in trade countries. At the same time under homogenic (gr. Homogenes - homogeneous in composition) means the factors of the production of the same quality. Labor homogeneity involves the existence of labor with the same level of education, qualifications and productivity, and capital homogeneity is its identical productivity and risk.

The Hexcher Theorem - Olin - Samuelson is based on the provision on the mobility of production factors inside the country. The situation is also assumed, i.e. free movement of goods between countries and free competition in the field of international trade. As a result of the country with excessive labor, produce and export labor-intensive products, and import capital-intensive. Countries with free capital, but experiencing lack of labor, produce and export, in accordance with theory, capital-intensive products, and import, respectively, labor-intensive.

However, as practice has shown, the leveling of relative and absolute prices for production factors has not occurred, for example, there are still significant differences in the level of wages in different countries.

In addition to the Hexcher theorem - Olin - Samuelson, certain interest is theorem of Stolper - Samuelson, within which V.F. Column and P. Samuelson proved that with certain prerequisites, foreign trade divides society on those in the end remains in pure winnings, and those who carry losses. The Theorem of Stuppera - Samuelson is formulated as follows: Establishment of trade relations and free trade inevitably lead to an increase in the remuneration of the factor intensively used in the production of goods, the price of which grows, and to a decrease in the factor's remuneration intensively used in the production of goods, the price of which falls out Therefore, due to the structure of the consumption of these goods by the owners of factors of production.

If the country quickly increases its capital stock by constant large-scale investment, it is faster approaching the relative overpowering of capital than its trading partners.

With the growth of capital reserves and the unchanged number of labor, the cost of capital falls, and prices for goods rich in capital are also reduced. As a result, in the conditions of growth, one of the factors of production increases the production of goods with a high content of this particular factor. There is a shift in the comparative advantages of the country towards this product with an absolute reduction in the production of another product.

Theorem Rybchinsky

Certain adjustments to the Theory of Hekscher - Olopa, TM Rybchchsky who proved theorem of the ratio of growth of the proposal of factors and increase production. He argued that the growth of the proposal of one of the factors of production in a situation of constancy of other variables leads not only to the increase in the production of goods, but also to reducing the release of other goods. The rapid expansion of the corresponding production sector due to the growth of the proposal and more intensive use of this or that production factor leads to an increase in profitability in this sector and the outflow of resources from other industries.

A classic example confirming this theorem is Holland, where in the 70s. XX century The development of natural gas deposits in the North Sea began. This led to the growth of investments in these deposits, the production volume began to increase, the role of natural gas in the country's economy increased. With increasing natural gas production, industrial exports of Holland declined. Rising prices for all types of fuel (including natural gas) In the global market strengthened this trend. The new sector caused the outflow of resources from other industries at the expense of higher salary and more high profitsAs a result, the production of manufacturing products has decreased. This situation was named "Dutch disease."

A similar problem took place in the UK, Norway and other countries where the intensive development of new deposits was carried out.

However, the theorem of Rybchinsky cannot be considered universal. For example, in some new industrialized countries during the economic transformation as a result of outflow labor resources New industries did not fall into the volume of agricultural production. Moreover, the agricultural sector of the economy of these NIS continued to actively develop.

Paradox Leontiev

Hekscher theory - Olin is divided by most modern economists. However, it does not always give a direct answer to the question of why it is one or another set of goods prevails in the export and import of the country. V. Leontiev, exploring foreign trade The United States in the postwar years, indicated that this country with a relatively cheap capital and expensive working force participates in international trade not in accordance with the theory of Hekscher - Olin.

With the help of the copyright "cost-release" in 1953, Leontyev calculated the volume of labor and capital used in the United States to produce a representative group of export goods in the amount of $ 1 million and the same volume of import-substituting goods for 1947 as a result it turned out that American import-substituting production by 30% more capital-intensive than exports, i.e. There were a large capital intensity of imports and a large complexity of the US exports, although, according to the theory of Hexcher - Olin, everything should have been up to the opposite. This is a contradiction and got a name. paradox (gr. Paradoxos - unexpected, strange) Leontiev.

In general, Leontian paradox can be explained so. The United States has traditionally paid much attention and pay the formation of highly skilled workers, investing in their training and advanced training for significant capital resources. As a result, the United States consists in the USA than in other countries, the ratio of human capital to the capital-based capital. The presence of a relatively larger resource of scientists, technicians and highly skilled workers compared to material capital and gives greater labor intensity of American exports.

At the same time, it is impossible to deny that capital is an excessive factor in the United States. However, as capital migrations from the United States, capital accumulation in other countries that have traditionally low labor pay, the advantage in the ratio of capital / work passes to these countries, and they begin to conquer the markets of goods, the production technology of which loses the uniqueness and becomes mass. This explains the greater capital intensity of the US import.

Hekscher's theory - Olin, according to the results of studies conducted by Americans Bowen, E. L Imer and L. Swaikauskas for 27 countries, 12 factors of production and many goods, confirmed by a little more than half of the cases. This suggests that the theory itself in itself works satisfactorily, although not the best way explains the nature of international trade.

Russia can be rapidly attributed to the typical of the theory of Hekscher - Oline's case: a large proportion in the export of raw materials, the products of metallurgy and the chemical industry, military equipment Explained abundance natural resources, the presence of significant raw materials processing facilities (metallurgy, chemical industry) and individual advanced technologies (mainly in the production of weapons and dual-use goods).

At the same time, despite the abundance of agricultural resources and the availability of the necessary employment for the development of civil engineering Russia continues to import (and in significant amounts) foodstuffs, cars and equipment.

Such examples are a prevention from the rectilinear use of the theory of Hexcher - Olin, which works in many, but not in all cases.

The theory of international trade, based on the proposal, that differences in relative prices are explained by varying country security factors, as well as the theories of absolute and comparative advantages, is based on numerous assumptions.

	Theory of Abs liteble	Theory comparable advantages	Theory of correspondence wearing factors production
Assumptions about production factors
The only factor of production (work)	H.	H.
Two production factor (work and capital)			H.
Factor (s) of production used (s) completely	H.	H.	H.
Differences in the exodudation of countries by production factors			H.
Limitations of production factors in each country	H.	H.	H.
Full mobility of production factors inside the country	H.	H.	H.
Full mobility of factors of production between countries	H.	H.	H.
Assumptions regarding the nature of the market
Two countries	H.	H.	H.
Two products	H.	H.	H.
Perfect competition	H.	H.	H.
Freedom of trade	H.	H.	H.
Balanced trade	H.	H.	H.
Transportation costs are absent	H.	H.	H.
Assumptions about the nature of production
Full specialization of countries in one product	H.	H.
Equal technology in both countries			H.
Assumptions about the nature of goods
One product time-consuming, second - capital			H.
Labor theory cost	H.	H.
Complete elasticity of demand for the price	H.	H.	H.
Assumptions about other trade theories
Tastes and consumer preferences are the same	H.	H.	H.
Scale effects are absent	H.	H.	H.

As can be seen from the table, the theory of the ratio of production factors is based on numerous assumptions on the factors of production, the nature of the market, production and goods, most of which are the same as in theories of absolute and comparative advantages. Differences are that the theory of the ratio of production factors proceeds from the fact that there are, as before, only two countries (Country I and Country II) and only two products (Product 1 and Product 2). One, of which labor-intensive, and the other is capital-intensive, and already two, and not one factor of production (work - L and capital - K). Moreover, each of the countries is endowed with the factors of production. Labor theory of value is not rejected, and other labor factors are also complemented by the idea of \u200b\u200bthe consciousness of the cost. At the same time, the total specialization of countries in the production of any product can not be the technology in two countries in the same way. So The most important assumptions of the theory of the ratio of production factors are the factor-intensity of individual goods (one product - time-consuming, second - capital-intensive) and various factors of individual countries (in one country capital relatively more, to another - relatively less).

Factor intensity is an indicator that determines the relative costs of factors of production to create a specific product.

Product 2 is relatively more capital-intensive than product 1, if the ratio of labor and capital production on the production of goods 2 is larger than the ratio of the same costs for the production of goods 1:

Tax saturation is an indicator that determines the relative security of the country by the factors of production.

Textricness can be determined in two ways: through the relative prices of each of the factors of production and through the absolute size of production factors.

The abundance or excess of some factors (work and capital) in the country makes them cheap compared to other, scarce factors in this country. Production of any products requires a combination of factors, and goods. In the production that relatively cheap, excess factors prevail, will be relatively cheap and within the country, and in the foreign market and thereby will have comparative advantages. According to the theory of Hexcher-Olin, the country exports those products, the production of which is based on excessive factors for it, and imports goods for the release of which it is already endowed by production factors.

Theory E. Hekscher - B. Olin is based on the following main positions. Countries involved in foreign trade exchanges are in varying degrees of production factors - labor and capital. Products produced in these countries differ in the structure and magnitude of the factors embodied in them (labor-intensive and capital-intensive production and goods produced in them). The possession of those or other factors of production in this country predetermines them relative low cost compared to those factors of the production that this country has no least.

If there is an excess of capital in the country, but at the same time it lacks the labor force, then the capital in it is relatively low, and the workforce will be expensive. At the same time, capital-intensive goods (requiring significant capital costs and relatively minor labor costs) in a given country will be carried out with less costs compared with those countries that lack capital. These differences in the provision of production factors, according to E. Hekscher and B. Olin, and predetermine the international specialization of countries. In other words, countries have comparative advantages on the goods, in the production of which the factor is prevailing in these countries in abundance. It is these products that make up the main part of the export of these countries. On the contrary, in the structure of import data, goods will prevail the goods, in the production of which was mainly used in them in abundance.

Theory of E. Hekscher and B. Olin actually develops the principle of comparative advantages (costs) D. Ricardo, since in accordance with the provisions of this country's theory should develop the production of those products for which the combination of the factors of production existing in these countries allows them to have comparative advantages compared to with other states. Later, the position of E. Hekscher and B. Olin were supplemented and developed by the American economist P. Samuelson. E. Hekscher and B. Olin believed that in the Freedom of Commerce, the unhindered movement of goods leads both the trends towards the level of prices for goods sold in world trade and to level prices for production factors. Taking into account the add-ons made by P. Samuelson, the Hexcher Theorem - Olin-Samuelson was formulated. Its essence is that the development of international trade is aligned with absolute and relative prices for homogeneous production factors in the participating countries in international trade. Under homogeneous factors imply the factors of the production of the same quality. At the same time, the homogeneity of capital implies its identical productivity and risk, and the homogeneity of labor involves the existence of labor with the same level of education, qualifications and productivity. In the situation of free trade, demand for cheaper goods is growing both within the country and in the foreign market. Therefore, the prices of these goods are beginning to grow, and together with them the profitability of their production increases, which, in turn, leads to the movement of production factors in the export industries from anti-import (substitute imports) of industries (since prices for these industries with increasing inflows Similar goods from abroad begin to decline). As a result of this process according to the theory of Hekscher - Oline - Samuelson, the ratio of production factors in export and anti-foreign industries is gradually aligned. At the same time, according to the authors of this theory, the ratio of prices for production factors both within the country itself and international trade is aligned. Thus, the theory of Hekscher - Olin - Samuelson is based on the mobility of the factors of production in the country (their movement between export and anti-import industries). At the same time, the situation is supposed to be free trade, i.e. free movement of goods between countries and free competition in the field of international trade. Based on this circumstance in the global economy, the situation in which countries with excessive labor are produced and exported by labor-intensive products, and countries with excessive capital, but experiencing lack of labor should specialize in the production and export of capital-intensive goods (importing, in turn, labor-intensive goods).

However, as shown by the subsequent development of events in international trade and the international division of labor, the leveling of prices for production factors did not occur. And to date, there are huge differences in national wage levels. The theory of Hexcher - Olin is the unlimited freedom of movement of factors of production and goods within the national economy. In practice, in modern conditions, the movement of labor in the industry with higher payments for a variety of reasons (territorial differences in various kinds, social causes, etc.) is not at all so fluid, as it follows from the specified theory. In addition, currently, depending on the general level of scientific and technical and technological developmentwhich is achieved in different countries, in them the same goods can be time-consuming or capital-intensive. Finally, one of theses of the theory of Hekscher - Olin is the assumption of the absence of an international movement of production factors. The realities of the modern global economy is a very dynamic international capital movement. The international migration of the labor force (although it is not so dynamic as the international capital movement). The marked circumstances put in modern conditions in question the conclusion of this theory that countries exportes are the production of production factors in which the factors of production are used.

Thus, on the theory of Hexcher-Olin, each country seeks to specialize in the production of goods requiring more factors that are relatively better endowed.

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