Rybczynski-Theorem

The Rybczynski theorem was discovered in 1955 by the Polish economist Tadeusz Rybczynski ( 1923-1998 ) in his article published " Factor Endowments and Relative Commodity Prices ". It describes the effect of unequal resource changes in the production in different sectors.

Derivation in the Heckscher -Ohlin model

As part of the Heckscher -Ohlin model and its assumptions, the effect can be derived if

• There is a one-sided resource expansion in a box plot with two factors (That is a factor of production is increased. )
• And the relative factor prices remain constant.

Since the relative factor prices are constant and only one resource is expanded, you can find a unilateral increase in the production capacity in a sector. However, it is also true that adjusts itself to increase production opportunities in all sectors. However, the increase in the sector that uses the factor with which the country is best equipped, relatively higher for other sectors. The transformation curve of factor allocations will therefore move disproportionately in the direction of the sector that uses the most resources. This effect, known as the Rybczynski effect is seen as a possible explanation for the foreign trade.

Alternative explanation

If full employment and production intensities are given, it means the increase in facilities with a production factor that that production is completely extended, which uses this factor intensively, and that production is absolutely limited, which uses less intense this factor.