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The concept of the multiplier will also be discussed here.
To conclude, we will present an example of the application of input- output economics to a specific, current issue namely, the environment.
An Introduction
The wider discipline of trade theory within which we find the field of input-output economics consists of four broader areas. Input-output economics, based on the Heckscher-Ohlin theory and defined by the findings of Wassily Leontief forms the biggest most well known part. However, there are other areas which deserve to be mentioned in order to round out the discussion. These other areas are the Ricardian model of comparative advantage, Posner's technological-gap theory and Vernon's product life-cycle theory...
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