Labour Content and Structure of Pakistan’s Manufactured Exports

The Heckscher-Ohlin (H-O) theorem occupies a central position in the discussion of the pattern of trade between countries. According to this theorem a country should specialize in the production and export of those commodities which require more of those factors with which the country is relatively well endowed, i.e., a labour-abundant country should export labour-intensive product and a capital-abundant economy should export capital-intensive goods.