This paper introduces sector-specific externalities in the Heckscher–Ohlin twocountry dynamic general equilibrium model to show that indeterminacy of the equilibrium path in the world market can occur. Under certain conditions in terms of factor intensities, there are multiple equilibrium paths from the same initial distribution of capital in the world market, and the distribution of capital in...

the relationship between trade liberalisation and the environment has been the subject of a growing body of literature in recent years. as can be seen from the differing assessment of instrument types for environmental protection, one of the important factors for the relationship between environmental protection and economic competitiveness are regulatory stringency and efficiency. this concern...

The goal of this research is to test the Heckscher-Ohlin’ theorem of comparative advantages on the sample of the Republic of Croatia and other European Union member countries. Heckscher-Ohlin theorem of comparative advantages can largely explain international trade in cases where the sample of countries is heterogeneous, in terms of the achieved level of development and the production factors a...

Innovative production is driven by creative destruction. High turnover requires frequent reallocation of capital. Banks play a major role in capital withdrawing funds from nonviable firms and redirecting credit to scale up the most productive firms. Structural parameters banking system thus affect country’s comparative advantage innovative sectors. Using Heckscher–Ohlin model with banks, this p...