In competitive international trade theory two of the basic models are the Specific Factors Model and the Heckscher/Ohlin model, with dimensionality 3×2 and 2×2 respectively. A surprising result in Heckscher/Ohlin is that the effect on factor prices of an infinitesimal change in a commodity...

Theories of international trade assume that all countries use similar and exogenous technologies in the production of any good. This paper relaxes this assumption. The marriage of literatures on biased technical change and trade yields a tractable theory, which predicts that differences in...