Economic liberalization in Eastern Europe allows access to a superior foreign technology. The initial adoption of the new technology is limited by the adaptability of current Eastern productive inputs to Western technologies. Further adoption is limited by the rate of Eastern investment in...

The Heckscher-Ohlin theory and the Ricardian theory of international commerce traditionally have been treated as separate conceptual frameworks, but a growing body of empirical work is relying on both simultaneously and calls for an integrated theory. This paper combines the Heckscher-Ohlin...