The Leontief paradox challenges the Heckscher-Ohlin model, which posits that countries export goods that utilize their abundant factors of production and import goods that require scarce factors. In his empirical study, economist Wassily Leontief found that the United States, a capital-abundant country, exported labor-intensive goods and imported capital-intensive goods, contradicting the model's predictions. This paradox suggests that the factor proportions theory may not universally apply and that other factors, such as technology, productivity, and industry-specific characteristics, must also be considered in trade analysis.
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