National and international returns to scale in the modern theory of international trade
WJ Ethier - The American Economic Review, 1982 - JSTOR
For over a quarter century, the Heckscher-Ohlin-Samuelson (HOS) trade model has
thoroughly dominated work in the pure theory of international trade. Indeed this model is
often identified as" the" modern theory of trade. But this dominance has always been
rendered uneasy by a widespread suspicion that the salient facts of modern commerce are
inconsistent with the theoretical structure. Two broad areas of suspicion may be identified.
The first, concerned with whether actual trade patterns and factor endowments are related …
thoroughly dominated work in the pure theory of international trade. Indeed this model is
often identified as" the" modern theory of trade. But this dominance has always been
rendered uneasy by a widespread suspicion that the salient facts of modern commerce are
inconsistent with the theoretical structure. Two broad areas of suspicion may be identified.
The first, concerned with whether actual trade patterns and factor endowments are related …