Stolper-Samuelson theorem



  • noun a theory to explain the effect of international trade in an economy with two factors of production and two goods. The factor which is most available and is used in the country’s exports, provides the most profits; the scarce factor which is used in imports gives a reduced profit; the result is to encourage protection of the country’s manufacturing sector against imports.
  • acronymSST
    (written as Stolper-Samuelson Theorem)
  • Stolper-Samuelson Theorem