The Rybczynski theorem, developed by the Polish-born economist Tadeusz Rybczynski in 1955 within the Heckscher-Ohlin model of international trade, states that when the relative prices of two goods are held fixed, an increase in the economy's endowment of one factor of production leads to a more than proportional expansion of output in the industry that uses that factor intensively, and an absolute decline in the output of the other industry. Both factors of production shift toward the industry using the newly abundant factor, expanding that industry's output while shrinking the other's. The theorem is used to analyze how changes such as capital investment, immigration or emigration reshape a trading economy's mix of output between industries.
Facts
StatementAt constant relative goods prices, a rise in the endowment of one factor leads to a more than proportional expansion of output in the sector using that factor intensively, and an absolute decline of the output of the other good. 1 Classification
Statement FormCharacterization Theorem 1 Connections
Has Statement Form
Entity-backed identity for the statement-form enum value this theorem already carries, resolved to a mathematics concept by an explicit value-to-entity map (phase 3 bucket conversion, docs\design_entity_backed_browse_buckets_20260928.md). The statement-form fact itself stays on the theorem unchanged.
Sources
1. Rybczynski theorem, Wikipedia
Statement of the theorem
It states that at constant relative goods prices, a rise in the endowment of one factor will lead to a more than proportional expansion of the output in the sector which uses that factor intensively, and an absolute decline of the output of the other good.
Introduction, development
The Rybczynski theorem was developed in 1955 by the Polish-born English economist Tadeusz Rybczynski
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