factor intensity reversal

Definitions

Economics

  • A property of the technologies for two industries such that their ordering of relative factor intensities is different at different factor prices. For example, one industry may be relatively capital intensive compared to the other at high relative wages and labor intensive at low relative wages. Some propositions of the Heckscher-Ohlin Model require the absence of FIRs.
  • acronymFIR
    (written as Factor intensity reversal)
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