U.S.exports were less capital-intensive than U.S.imports,despite the relative abundance of capital in the country.This phenomenon runs contrary to what the Heckscher-Ohlin theory would predict and is termed the _____ paradox.

Question

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Using the Heckscher-Ohlin theory,Wassily Leontief postulated that since the United States was relatively abundant in capital compared to other nations,the United States would be an exporter of capital-intensive goods and an importer of labor-intensive goods.However,he found that U.S.exports were less capital intensive than U.S.imports and this has become known as the Leontief paradox.

USExports Were Less Capital-Intensive Than U