factor endowment

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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.

factor endowment

the FACTORS OF PRODUCTION that a country has available to produce goods and services. The size and quality of a country's resource base (natural resources, labour and capital) determine the amount of goods and services it can produce (see GROSS NATIONAL PRODUCT) and the rate at which it can raise living standards over time (see ECONOMIC GROWTH). Differences between countries in terms of the availability and sophistication of their resource inputs provide an incentive for them to engage in INTERNATIONAL TRADE in order to obtain products that they cannot make efficiently for themselves.
References in periodicals archive ?
Targetted it to highlight that work on proposed Priority Special Economic Zones under CPEC, Factor Endowments Opportunities and Prospects has not been completed yet.
For instance the work on proposed Priority Special Economic Zones under CPEC, Factor Endowments Opportunities and Prospects has not been completed yet.
Following the lead of the new institutional economics, part of the literature argues that institutions cause differences in productivity and factor endowments which, in turn, explain economic development.
International comparative data is presented on (1) trade and economic growth, (2) factor endowments, trade and growth, and (3) trade and economic inequalities.
Yet, making strides towards upgrading other factor endowments -- a classification amongst which economists include the labour force -- can only be helpful in case that doesn't sufficiently happen.
Factor endowments are subject to depletion caused by the terrorism and are given by (5)
Factors endowment determines comparative advantage and transformation from labor/resource intensive to capital intensive structure requires a change in factor endowments composition.
However, the rise of Asia -- including China -- over the last three decades has pushed these countries to trade with each other and involved their factor endowments in the process.
Key institutions, besides factor endowments, that can influence the location of production include national and regional systems of innovation, flexibility, and willingness to embrace innovation.
Choi and Krishna 2004, Davis and Weinstein 2003, Harrigan 1997, Lundberg and Wiker 1997, Nishioka 2006 and Torstensson 1992), many of these analyses are restricted to highly developed OECD countries, which probably share quite similar production technologies and factor endowments.
They can do this by adopting the "new structural economics" framework Lin proposes, which is organized around three ideas: that the economy's structure of factor endowments (land, labor, and capital) determines total budget, relative factor prices, and comparative advantages; that each level of economic development is a point along the continuum from a low-income agrarian economy to a high-income industrialized economy; and that at each given level of development, the market is the basic mechanism for effective resource allocation, although the government should coordinate or provide improvements in infrastructure and compensate for externalities to facilitate industrial upgrading and diversification.
Shifts in Relative Wages: The Role of Trade, Technology and Factor Endowments.