Risk of Expropriation and Rybczynski Theorem

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dc.contributor.author Toukan, Amjad
dc.date.accessioned 2016-05-26T13:08:02Z
dc.date.available 2016-05-26T13:08:02Z
dc.date.copyright 2014 en_US
dc.date.issued 2016-05-26
dc.identifier.citation Toukan, A.(2014). Risk of Expropriation and Rybczynski Theorem. International Research Journal of Finance and Economics, 119, 128-139
dc.identifier.issn 1450-2887 en_US
dc.identifier.uri http://hdl.handle.net/10725/3886 en_US
dc.description.abstract In the Heckscher-Ohlin world, Rybczynski theorem predicts that holding product prices constant, an increase in the relative supply of a factor increases the relative output of the good that uses that factor intensively so much that the output of the other goods decline. Using a sample of 16 developing countries, 28 manufacturing industries and eight years, we find evidence contradicting the predictions of Rybczynski theorem. This contradiction is examined using a modification of the Heckscher-Ohlin model to allow for international variability in corruption and risk of expropriation. Our results show that the weak enforcement of property rights indicated by the increase in the incidence of corruption and the increase in the risk of expropriation counteracts the increase in the relative output of capital-intensive goods to the output of labor-intensive goods caused by an increase in the capital stock per worker and predicted by Rybczynski theorem. en_US
dc.language.iso en en_US
dc.title Risk of Expropriation and Rybczynski Theorem en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SOB en_US
dc.author.idnumber 200904980 en_US
dc.author.department Department of Economics (ECON) en_US
dc.description.embargo N/A en_US
dc.relation.journal International Research Journal of Finance and Economics en_US
dc.journal.issue 119 en_US
dc.article.pages 128-139 en_US
dc.keywords Corruption en_US
dc.keywords Risk of expropriation en_US
dc.keywords Production patterns en_US
dc.keywords Capital abundance en_US
dc.keywords Factor price equalization en_US
dc.keywords Multiple diversification cones en_US
dc.keywords Developing countries en_US
dc.identifier.ctation Toukan, A. (2014). Risk of Expropriation and Rybczynski Theorem. International Research Journal of Finance and Economics, 119, 128-139 en_US
dc.author.email amjad.toukan@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://www.internationalresearchjournaloffinanceandeconomics.com/ISSUES/IRJFE_Issue_119.htm en_US

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