Stolper–Samuelson Theorem: Trade and Income Distribution Explained
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Stolper–Samuelson Theorem: Trade and Income Distribution Explained
The Stolper–Samuelson Theorem, proposed by Wolfgang Stolper and Paul Samuelson in 1941, is a cornerstone of international trade theory. Derived from the Heckscher–Ohlin model, it explains how changes in the prices of goods affect the real incomes of production factors like labor and capital. The theorem reveals that trade benefits the ...
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