  We analyze the effects of energy and commodity prices on commodity output
using a three-factor, two-good general equilibrium trade model with three
factors: capital, labor, and imported energy. We derive a sufficient condition
for each sign pattern of each relationship to hold, which no other studies have
derived. We assume factor-intensity ranking is constant and use the EWS
(economy-wide substitution)-ratio vector and the Hadamard product in the
analysis. The results reveal that the position of the EWS-ratio vector
determines the relationships. Specifically, the strengthening (resp. reduction)
of import restrictions can increase (resp. decrease) the commodity output of
exportables, if capital and labor, domestic factors, are economy-wide
complements. This seems paradoxical.
