ASWADI BIN ISMAIL
NORHASHIMAH BINTI ISMAIL
NUR ASILAH SALIM
Russian-American economist notable for his research on how
changes in one economic sector may have an effect on other
With three of his doctoral students Paul Samuelson, Robert
Solow, Vernon L. Smith
won the Nobel Committee's Nobel Memorial Prize in Economic
Sciences in 1973
to test the Hecksher – Ohlin theory
empirically. In 1954, Leontief found that
the United States
the most capital abundant country in
exported labor-intensive goods and
imported capital-intensive goods, in
contradiction with Hecksher – Ohlin
theory ("H–O theory").
the finding that was contrary with the
prediction called paradox
1947, US endowed more capital intensive goods than other
HO theory predict that US export would required more
capital intensive goods than US import labour intensive
Leontief surprise the world with discovering that US import 30%
more capital intensive good than US export
Wassily W. Leontief done 2 test :
the first Empirical Test of the HO theory
Leontief's Second Test
1971, Professor Robert Baldwin continue the study with
Baldwin's Third Test
Leontief : US more efficient
argued that US workers may be more efficient than foreign
U.S. workers were three times as effective as foreign
US had special advantage in producing new products or goods
made with innovative technology
Us tend to be highly skilled, able to produce labour intensive
product which required highly skilled labour inputs
Based on the slide, give the full name the inventor of Leontief
In your words, explain a little bit about Leontief Paradox Theory?
The Leontief paradox questioned the validity of the theory of:
a. Comparative advantage
b. Factor endowments
c. Overlapping demands
d. Absolute advantage
Based on the slide, named 3 country that also been studied by
The Leontief Paradox states that:
A)the US exports are less capital intensive than US imports.
B)the US exports are more capital intensive than US imports.
C)the US exports are usually in balance with US imports.
D)the US exports are not a factor with US imports.