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On the Rybczynski Theorem: A Note

According to the Rybczynski theorem,1 an in crease in the quantity of the factor of production which is used intensively in the exporting sector would always lead to a worsening in the terms of trade. One of the assumptions in this theorem is the absence of any inferior goods.2 The purpose of this paper is to point out that this assumption is not strong enough to assure the validity of the Rybczynski theorem.