Postprint version. Published in International Review of Economics & Finance, Volume 20, Issue 2, April 1, 2011, pages 202-210.
The definitive version is available at https://doi.org/10.1016/j.iref.2010.11.009.
Rethinking the foundations of Heckscher–Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relationships.