natural enemy

Definition

Economics

  • In the Heckscher-Ohlin Model, an industry is a natural enemy to a particular factor if a rise in the price of that industry alone causes a fall in the price of that factor, so that the real return to that factor is decreased. Used by Jones and Scheinkman (1977) to characterize the Ethier's (1974) generalization of the Stolper Samuelson Theorem.
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