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Factor Endowment
(redirected from Factor Endowments)

    Also found in: Wikipedia 0.01 sec.
Factor Endowment
The means of production (namely land, labor, capital and sometimes entrepreneurship) contained in an area. In general, greater factor endowment portends greater economic success. However, some resource-poor countries and regions become successful simply by efficient use of the little factor endowment they have.
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But Lawrence and Spiller (1983) developed a model of economies of scale, product diversity and international trade where factor endowments have a causal role.
Intra-industry trade and development: revisiting theory, measurement ... by Das, Gouranga G. / Indian Journal of Economics and Business
VFDI flows between two countries will not occur unless factor endowments are sufficiently different.
Multinational Firms in the World Economy by Hart, Jeffrey A. / Comparative Economic Studies
Krugmen (1983 and 1990) has intertwined "firm-specific variables" and "country-specific variables" (factor endowments), which generate transaction cost incentives through integration of up-stream and down-stream activities (inside a firm and within the country), and movement of MNCs across national boundaries arise from unequal factor endowments to reap the benefit of unequal factor prices.
Theorizing Japanese FDI to China by Rahman, Khondaker Mizanur / Journal of Comparative International Management
 
 
 
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