Mathematical Analysis of Factorial Asymmetry in a Dynamic Heckscher-Ohlin Model with Cobb-Douglas Technology
Abstract
This article aims to mathematically analyze asymmetries in factor endowments within a dynamic Heckscher-Ohlin model with Cobb-Douglas technology, assessing how these structural differences influence the formation of comparative advantages. A methodology is developed to identify factor disparities, integrating insights from static intra-industry trade analysis to enhance the conceptual clarity and pedagogical applicability of the model. Using a Cobb-Douglas production function, the study examines trajectories of economic convergence and divergence, highlighting the critical role of input substitution elasticity in intertemporal adjustment processes. The results show that, even under factor price equalization, economies with initially different capital–labor ratios may diverge in income levels, challenging traditional predictions of convergence. The proposed approach offers interpretative tools that are useful for applied economic analysis as well as for the design of productive development policies. Received: 19 May 2025 / Accepted: 21 November 2025 / Published: January 2026
Fields of Study & Subjects
Economic Growth and Productivity
Global trade and economics
Economic and Technological Innovation
Publication details
- Journal / source
- Journal of Educational and Social Research
- Volume
- 16
- Issue
- 1
- Pages
- 675–675
- Publication date
- 5 January 2026