Rybczynski Theorem

Discipline: Economics

Named after Polish-born English economist TADEUSZ RYBCZYNSKI (1923-1998), Rybczynski theorem posits that when one of two factors of production is increased there is a relative increase in the production of the good using more of that factor.

This unfortunately leads to a corresponding decline in that good's relative price.

Also see: Heckscher-Ohlin trade theory

Source:
T Rybczynski, 'Factor Endowments and Relative Commodity Prices', Econometrica NS, vol. XXII (1955), 336-41

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