Leontief’s paradox

The Leontief’s paradox” use in the conditions of the post-war economy

The Heckscher – Ohlin – Samuelson model provides a mathematical proof of the possibility of equalizing relative and absolute prices of production factors due to international trade, provided certain assumptions are met. Wassily Leontief proved, in practice these assumptions are not followed. Therefore, there is a need to adjust the parameters of the model in the calculations of indicators of value estimation and the use of production factors.