Abstract

If the number of productive factors exceeds the number of commodities produced, changes in factor endowments and/or any commodity price will alter factor prices in a way that depends both upon factor intensities and the degree of factor substitutability. However, bilateral factor intensity rankings for constant price industries by themselves restrict possible factor price changes. If factors are ranked from most to least intensive in any such pair of industries, all the gainers cannot be located at one end of the ranking.

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