The Leontief paradox is based on empirical results that did not support the Heckscher-Ohlin theory. In the research behind the paradox, the United States imported more capital intensive goods than it exported, even though the United States is viewed as being more capital abundant and less labor abundant. Do you agree with how Leontief explained this paradox? Why, or why not? What other causes do you think might explain the finding?
Testimonials
Unit III Discussion