Stolper–Samuelson theorem | Wikipedia audio article
Channel: wikipedia tts
Date: 18/02/2019

This is an audio version of the Wikipedia Article:
https://en.wikipedia.org/wiki/Stolper%E2%80%93Samuelson_theorem


00:00:43 1 History
00:02:45 2 Derivation
00:05:16 3 Criticism
00:06:53 4 See also
00:07:07 5 Further reading



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SUMMARY
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The Stolper–Samuelson theorem is a basic theorem in Heckscher–Ohlin trade theory. It describes the relationship between relative prices of output and relative factor rewards—specifically, real wages and real returns to capital.
The theorem states that—under specific economic assumptions (constant returns to scale, perfect competition, equality of the number of factors to the number of products)—a rise in the relative price of a good will lead to a rise in the return to that factor which is used most intensively in the production of the good, and conversely, to a fall in the return to the other factor.