The Leontief Paradox

This video is about the Leontief Paradox, which is an empirical study of the Heckscher-Ohlin Theorem conducted by W. Leontief in the early 1950s. Contrary to the expectation to the H-O Theory, Leontief found US exporting labour intensive goods. Because study found capital labour ratio is surprisingly higher in import substitutes against lower capital labour ratio in export industries, it lead him to conclude paradox in H-O Theory. The way in which the Leontief paradox is being conducted, major findings of the empirical test, controversies and reconciliation debate that this paradox has lead into the academics also been visualized in this video.

To watch Heckscher Ohlin trade theory, follow this link    • Heckscher-Ohlin Trade Theory