Economics

The world's most capital-rich country exported labor-intensive goods

Trade theory predicted capital-abundant countries export capital-intensive goods and import labor-intensive ones. In 1953, economist Wassily Leontief tested this on US trade data and found the reverse: American exports were more labor-intensive than its imports, despite the US having the highest capital per worker on Earth. The finding baffled economists for years and pushed trade theory beyond simple factor endowments.

Wassily Leontief, Domestic Production and Foreign Trade: The American Capital Position Re-Examined — Proceedings of the American Philosophical Society, 1953

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