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Topic: Business
Number of pages / Number of words: 5 / 1153
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To this Leontief said "we have in economics today a high concentration of theory without fact on the one hand, and a mounting accumulation of fact without theory on the other" (Leontief, 1986). He went on to state that the collusion of the two was the most important task at hand for economists of the day...


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He made this collusion possible through the analytical method which he called inter-industry or input-output analysis.

Leontief's findings were revolutionary in many ways, however most importantly because they cast doubt on the Heckscher-Ohlin theory. Under the Heckscher-Ohlin theory, "productive factors are assumed to move from areas of low remuneration to areas of high remuneration, lowering their supply in the first region and raising it in the latter...


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