Leontief Paradox

Summary of Leontief Paradox

Derived from a study by Wassily Leontief of U.S. trade statistics, commencing in 1947 and spanning twenty-five years, which revealed that capital/labor ratios of U.S. exports were lower than those of imports during the same time span. This empirical analysis contradicts conventional views that a nation exports products in which it enjoys a relative factor advantage.

(Main Author: William J. Miller)