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학술저널

The Welfare Effect of Changes in Factor Intensities

The Welfare Effect of Changes in Factor Intensities

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This paper attempts to show the welfare effect of changes in factor intensities. The standard two output-two input trade model is used. The welfare of a country could increase, decrease or remain constant after a change in the factor intensities of an industry. The outcome depends on the factor prices which prevail in the country when the change in factor intensities takes place.

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