Rybczynski theorem

The Rybczynski theorem displays how changes in an endowment affects the outputs of the goods when full employment is sustained.

(See also the Rybczynski theorem)

In a model of international trade based on resource endowments as the Heckscher-Ohlin/Heckscher-Ohlin-Vanek, the Dutch disease can be explained by the Rybczynski theorem.

The Rybczynski theorem explains the outcome from an increase in one of these factor's supply as well as the effect on the output of a good which depends on an opposing factor.

The Magnification effect on production quantity-shifts induced by endowment changes (via the Rybczynski theorem) predicts a larger proportionate shift in output-quantity than in the corresponding endowment factor shift which induced it.