July 1986 (Revised April 1989)
Background Note
HBS Case Collection

Note on Sources of Comparative Advantage

By: David B. Yoffie and John J. Coleman

Format:Print
| Pages:5

Abstract

After Eli Heckscher and Bertil Ohlin's propositions about the sources of comparative advantage were empirically challenged by Wassily Leontief, scholars set out to explain the "Leontief paradox" by developing alternative theories on the sources of comparative advantage. This note explores several of these alternative approaches, including the skilled-labor hypothesis, product life cycle theories, the rise of intra-industry trade, and the questioning of the very usefulness of the concept of comparative advantage.

Keywords

Competitive Advantage

Citation

Yoffie, David B., and John J. Coleman. "Note on Sources of Comparative Advantage." Harvard Business School Background Note 387-024, July 1986. (Revised April 1989.)