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  • Aselya Zhania - Leontief Paradox

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    The document discusses the Leontief Paradox, which found that the United States imported more capital-intensive goods than it exported in the late 1940s, contradicting predictions from Heckscher-Ohlin theory. It explains the paradox by noting differences in factors of production like fixed capital, working capital, raw materials, and different types of labor. The document also mentions that capital-saturated countries tend to export more labor-intensive goods while labor-saturated countries export more capital-intensive goods.

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    Leontief paradox theory prezentation

    Original Title

    Aselya Zhania- Leontief paradox

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    The document discusses the Leontief Paradox, which found that the United States imported more capital-intensive goods than it exported in the late 1940s, contradicting predictions from Heckscher-Ohlin theory. It explains the paradox by noting differences in factors of production like fixed capital, working capital, raw materials, and different types of labor. The document also mentions that capital-saturated countries tend to export more labor-intensive goods while labor-saturated countries export more capital-intensive goods.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    16 views9 pages

    Aselya Zhania - Leontief Paradox

    Uploaded by

    123 ArAkh
    The document discusses the Leontief Paradox, which found that the United States imported more capital-intensive goods than it exported in the late 1940s, contradicting predictions from Heckscher-Ohlin theory. It explains the paradox by noting differences in factors of production like fixed capital, working capital, raw materials, and different types of labor. The document also mentions that capital-saturated countries tend to export more labor-intensive goods while labor-saturated countries export more capital-intensive goods.

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    © All Rights Reserved
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    of 9

    LEONTIEF

    PARADOX AND
    ITS ANALYTICAL
    EXPLANATION

    Done by Zhaniya Yengebayeva and Aselya Bolatova


    Content
    • The Essence of the Leontief Paradox

    • Explanation of the Leontief paradox

    • Factors of production

    • Conclusion

    • References
    The
    Essence of
    the
    Leontief
    Paradox
    Explanation of the Leontief paradox

    Capital intensity The inconsistency of


    of US imports Heckscher Ohlin's
    by 30% theory
    Research results of V. Leontiev
    Expences Unit Symbols Export Import

    Capital, prices
    USD K 2.550.000 3.091.000
    1947

    Amount of
    Labour L 182 170
    labour

    Ratio USD/Amount K/L 14011 18182


    factors of production

    Capital Raw material Labour

    Fixed capital Intangible assets Simple physical


    labor
    Working capital Intellectual work
    Capital Saturated countries Labour-saturated countries

    Export Export

    labor-intensive products capital-intensive products

    1956 192 6%
    REFERENCES
    • https://spravochnick.ru/ekonomika/
    ekonomicheskie_paradoksy/paradoks_leonteva/
    #obyasnenie-paradoksa
    • https://www2.econ.iastate.edu/classes/econ355/
    choi/leo.htm
    • https://kapital-rus.ru/articles/article/
    novyj_vzglyad_na_paradoks_leonteva/
    • http://www.aup.ru/books/m175/1_4.htm
    Thank you for
    your attention!

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