Leontief Paradox


The finding of Leontief (1954) that U.S. imports embodied a higher ratio of capital to labor than U.S. exports. This was surprising because it was thought that the U.S. was capital abundant, and theHeckscher-Ohlin Theorem would then predict that U.S. exports would be relatively capital intensive.

Use Leontief Paradox in a sentence

You should try and do some research on the leontief paradox and see if there is anything that you can learn from it.


Based on the Leontief paradox, they found that the imports that were being brought in by the US, had a higher capital to labor ratio than their exports.


Due to the Leontief Paradox, it is more cost effective for the company to import steel, at a cheaper cost, to use on domestic products than to try to import those products to another country.


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