Leontief Paradox

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Leontief Paradox

The concept that countries with a great deal of capital available import capital intensive commodities and export labor intensive commodities. This contradicts what one would expect: before the paradox was uncovered, economic theory held that countries would export according to their competitive advantages (that is, capital intensive countries would import labor intensive products and export capital intensive products). The Leontief paradox led to rejection or revision of the Heckscher-Ohlin theorem.
References in periodicals archive ?
The second explanation of Leontief's paradox is due to Factor Intensity Reversal (FIR).
However, on empirically testing Heckscher-Ohlin's Theory with reference to the United States, Leontief came up with findings that were paradoxical and incompatible with Heckscher-Ohlin Theory, and which later came to be termed Leontief's Paradox [7].
They also give no evidence of Leontief's Paradox in the case of Pakistan.