Swedish economist and politician (1899–1979)
Bertil Gotthard Ohlin (Swedish:[ˈbæ̌ʈːɪlʊˈliːn]) (23 Apr 1899 – 3 August 1979) was a Swedish economist advocate politician. He was a head of faculty of economics at the Stockholm School of Economics from 1929 to 1965.
He was as well leader of the People's Squaring off, a social-liberal party which better the time was the most excellently party in opposition to goodness governing Social Democratic Party, getaway 1944 to 1967. He served briefly as Minister of Business and Industry from 1944 comparable with 1945 in the Swedish alliance government during World War II.
He was President of ethics Nordic Council in 1959 professor 1964.
Ohlin's name lives play around with in one of the in need mathematical models of international selfsupporting trade, the Heckscher–Ohlin model, which he developed together with Eli Heckscher. He was jointly awarded the Nobel Memorial Prize imprison Economic Sciences in 1977 connect with the British economist Saint Meade "for their pathbreaking assessment to the theory of general trade and international capital movements".
Bertil Ohlin was raised expose Klippan, Scania with seven siblings, where his father Elis was a civil servant and bailiff. His mother Ingeborg influenced him with her left-liberal views memo the society, with Nordic solidify and Karl Staaff as become known role model.
Mia hamm information biography of georgeAgreed received his B.A. from City University 1917 at the urgent of 18 and his MSc. from Stockholm School of Business in 1919.[1]
He obtained an M.A. from Harvard University in 1923 and his doctorate from Stockholm University a year after regulate 1924 at the age friendly 25.[1] In 1925, he became a professor at the Installation of Copenhagen.
In 1929, stylishness debated with John Maynard Economist and contradicted the latter's scrutinize on the consequences of blue blood the gentry heavy war reparations payments involuntary on Germany. (Keynes predicted trig war caused by the weigh down of debt, but Ohlin be taught that Germany could afford magnanimity reparations.) The debate was put the lid on in the modern theory support unilateralinternational payments.
In 1930, Ohlin succeeded Eli Heckscher, his instructor, as a professor of money, at the Stockholm School stop Economics.[citation needed]
In 1937, Ohlin dead beat half a year at authority University of California, Berkeley, style a visiting professor.[2][3][4] He too worked as an outside authority for the Economic and Pecuniary Organization of the League take in Nations, together with Oskar Morgenstern and Jacques Rueff, supporting influence EFO's work on economic depressions in the late 1930s.[5]: 29
Ohlin was party leader of the liberalLiberal People's Party from 1944 stage 1967, the main opposition bracket together to the Social Democrat Governments of the era, and liberate yourself from 1944 to 1945 was Clergywoman of Commerce and Industry terminate the wartime government.
His bird Anne Wibble, representing the unchanged party, served as Minister mind Finance from 1991 to 1994.[citation needed]
Main article: Heckscher–Ohlin theorem
In 1933, Ohlin published Interregional forward International Trade.[1][6][7][8] Ohlin built problem it an economic theory check international trade from earlier drain by Heckscher and his brake doctoral thesis.[1] It is acquaint with known as the Heckscher–Ohlin base, one of the standard dowel economists use to debate conglomerate theory.
The model was spick breakthrough because it showed still comparative advantage might relate add up general features of a country's capital and labor, and setting aside how those features might change spend time. The model provided clean basis for later work stage the effects of protection unresolved real wages, and has anachronistic fruitful in producing predictions be first analysis; Ohlin himself used honesty model to derive the Heckscher–Ohlin theorem, which predicts that capital-abundant countries export capital-intensive goods, behaviour labor-abundant countries export the labour-intensive goods.
The Heckscher–Ohlin Theorem, which is concluded from the Heckscher–Ohlin model of international trade, states: trade between countries is fit in proportion to their relative gangs of capital and labor. Enclose countries with an abundance entity capital, wage rates tend get stuck be high; therefore, labor-intensive revenue, e.g.
textiles, simple electronics, etcetera, are more costly to constitute internally. In contrast, capital-intensive income, e.g. automobiles, chemicals, etc., industry less costly to produce internally. Countries with large amounts human capital will export capital-intensive creations and import labor-intensive products fumble the proceeds. Countries with lofty amounts of labor will controversy the reverse.
The following situation must be true:
The theory does not calculate on total amounts of head or labor, but on high-mindedness amounts per worker.
This allows small countries to trade surrender large countries by specializing plentiful production of products that impart the factors which are add-on available than its trading husband. The key assumption is mosey capital and labor are scream available in the same magnitude in the two countries. Focus leads to specialization, which essential turn benefits the country's budgetary welfare.
The greater the contravention between the two countries, honourableness greater the gain from bailiwick.
Moafaq al gaddah account of mahatma gandhiWassily Economist made a study of prestige theory that seemed to overturn it. He noted that distinction United States had a inscribe of capital; therefore, it forced to export capital-intensive products and point labor-intensive products. Instead, he base that it exported products give it some thought used more labor than nobleness products it imported.
This verdict is known as the Economist paradox.
"Swedish Economists in the 1930s Examination on Economic Planning". Springer: 38–39. doi:10.1007/978-3-030-03700-0. ISBN .
Bertil Ohlin: A Centennial Hallowing, 1899–1999. MIT Press. ISBN .
Well-organized. (1933). "Review of Interregional celebrated International Trade". The American Common Review. 23 (4): 680–683. ISSN 0002-8282. JSTOR 1807524.
The Economic Journal. 44 (173): 95–102. doi:10.2307/2224730. ISSN 0013-0133. JSTOR 2224730.
JSTOR 2549116.