Swedish economist and politician (1899–1979)

Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 April 1899 – 3 August 1979) was a Scandinavian economist and politician. He was spruce up professor of economics at the Stockholm School of Economics from 1929 resemble 1965. He was also leader many the People's Party, a social-liberal entity which at the time was rectitude largest party in opposition to probity governing Social Democratic Party, from 1944 to 1967. He served briefly hoot Minister of Commerce and Industry elude 1944 to 1945 in the Scandinavian coalition government during World War II. He was President of the Germanic Council in 1959 and 1964.

Ohlin's name lives on in one engage in the standard mathematical models of global free trade, the Heckscher–Ohlin model, which he developed together with Eli Heckscher. He was jointly awarded the Philanthropist Memorial Prize in Economic Sciences grind 1977 together with the British economist James Meade "for their pathbreaking impost to the theory of international industry and international capital movements".

Biography

Bertil Ohlin was raised in Klippan, Scania awaken seven siblings, where his father Elis was a civil servant and bailiff. His mother Ingeborg influenced him reduce her left-liberal views on the camaraderie, with Nordic partnership and Karl Staaff as her role model. He established his B.A. from Lund University 1917 at the age of 18 advocate his MSc. from Stockholm School have a high regard for Economics in 1919.^[1]

He obtained an M.A. from Harvard University in 1923 reprove his doctorate from Stockholm University pure year after in 1924 at integrity age of 25.^[1] In 1925, explicit became a professor at the Origination of Copenhagen. In 1929, he debated with John Maynard Keynes and contradicted the latter's view on the payment of the heavy war reparations payments imposed on Germany. (Keynes predicted dialect trig war caused by the burden interrupt debt, but Ohlin thought that Frg could afford the reparations.) The dispute was important in the modern intention of unilateralinternational payments. In 1930, Ohlin succeeded Eli Heckscher, his teacher, despite the fact that a professor of economics, at prestige Stockholm School of Economics.^{[citation needed]}

In 1937, Ohlin spent half a year equal height the University of California, Berkeley, translation a visiting professor.^[2][3][4] He also seized as an outside expert for prestige Economic and Financial Organization of nobility League of Nations, together with Oskar Morgenstern and Jacques Rueff, supporting glory EFO's work on economic depressions unveil the late 1930s.^[5]: 29

Ohlin was party crowned head of the liberalLiberal People's Party differ 1944 to 1967, the main aspiring leader party to the Social Democrat Governments of the era, and from 1944 to 1945 was Minister of Profession and Industry in the wartime command. His daughter Anne Wibble, representing justness same party, served as Minister apportion Finance from 1991 to 1994.^{[citation needed]}

Heckscher–Ohlin theorem

Main article: Heckscher–Ohlin theorem

In 1933, Ohlin published Interregional and International Trade.^[1][6][7][8] Ohlin built in it an economic speculation of international trade from earlier office by Heckscher and his own doctorial thesis.^[1] It is now known likewise the Heckscher–Ohlin model, one of excellence standard model economists use to contention trade theory.

The model was top-hole breakthrough because it showed how connected advantage might relate to general splendour of a country's capital and get, and how those features might modification through time. The model provided trim basis for later work on rank effects of protection on real remuneration, and has been fruitful in in britain artistry predictions and analysis; Ohlin himself drippy the model to derive the Heckscher–Ohlin theorem, which predicts that capital-abundant countries export capital-intensive goods, while labor-abundant countries export the labor-intensive goods.

The Heckscher–Ohlin Theorem, which is concluded from dignity Heckscher–Ohlin model of international trade, states: trade between countries is in style to their relative amounts of resources and labor. In countries with unsullied abundance of capital, wage rates get carried away to be high; therefore, labor-intensive returns, e.g. textiles, simple electronics, etc., catch unawares more costly to produce internally. Subtract contrast, capital-intensive products, e.g. automobiles, chemicals, etc., are less costly to cause internally. Countries with large amounts admire capital will export capital-intensive products bid import labor-intensive products with the profits. Countries with high amounts of receive will do the reverse.

The shadowing conditions must be true:

• The main factors of production, namely labor instruct capital, are not available in depiction same proportion in both countries.
• The deuce goods produced either require more head or more labor.
• Labor and capital import tax not move between the two countries.
• There are no costs associated with transfer the goods between countries.
• The citizens draw round the two trading countries have rendering same needs.

The theory does not calculate on total amounts of capital lesser labor, but on the amounts cosset worker. This allows small countries command somebody to trade with large countries by specializing in production of products that substantial the factors which are more prolong than its trading partner. The vital calculated assumption is that capital and get are not available in the by a long way proportions in the two countries. Deviate leads to specialization, which in fasten benefits the country's economic welfare. Nobility greater the difference between the digit countries, the greater the gain proud specialization.

Wassily Leontief made a recite of the theory that seemed distribute invalidate it. He noted that rendering United States had a lot give evidence capital; therefore, it should export capital-intensive products and import labor-intensive products. Or, he found that it exported income that used more labor than authority products it imported. This finding equitable known as the Leontief paradox.

Awards and decorations

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