Rybcznski Theorem:
Now, we consider the effect of charges in endowment (of labor or capital) on the output. For this we need to consider only the equations (xxiv) and (xxv). We have already noted the coefficients are functions of factor prices only, i.e.,

Thus, if either L or K changes, aij's remain constant. Under this assumption, differenting (xxiv) and (xxv) i.e., with respect to L, we have,


These results are known as the Rybcznski theorem. They are perfectly intuitive. It can, for example, be said that an increase in endowment of labor (holding output prices constant) will increase the output of the labor-intensive industry and decrease the output of the capital-intensive industry. Analogous explanation follows for an increase in the endowment of capital.
Now, we offer a diagrammatic illustration for the proof of Rybcznski theorem. Here, assumption is that there is multiple production technique such that the contract curve is smooth and always lies below the diagonal.

Since the wage-rental ratio is unchanged, optimum factor will be unchanged. The new production point is E1. O2' E1 and O2 Eo are parallel to each other. Clearly, there is an increase in the production of good yl (of the sector -1) and fall in production of y2 (good of the sector -2), since 02' El = 02 G < 02 Eo. lncrease in the endowment of labor causes expansion of labor intensive good (here X1). Since endowment of capital is fixed it is to be released from the sector-2, which involve contraction of y. Therefore, production of increases more than the actual increase in the endowment of labor. This is known as the 'magnification effect'.