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 ?
This paper aims to explore whether firms in the oil and gas industry are making use of the different factor endowments accessible in close spatial proximity.
It must factor endowments into the system and encourage research and development.
Over time, new trade theories emerged based on differences in opportunity costs, differences in factor endowments, factor intensities and with regard to inter and intra industry trade.
Experts point out that cultural overlap and consequent similarity of consumption patterns, the natural integration of industrial production due to likeness of demand and factor endowments, low delivery costs and short lead times make the neighbouring markets a natural extension of domestic market.
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.
Fourth, trade relationships in these economic sectors occupy important positions with countries where Colombia shares similar relative factor endowments such as Fcuador, Chile, Brazil, Mexico and Venezuela (Annex 1).
The reason is that any such model will have to maintain the assumptions of the neoclassical trade theory, namely that countries are equal in every respect except in the quantities of factor endowments; that is, partner countries are qualitatively homogenous societies.
Objective: I plan to study the effect of history on conflict and economic development with two historical microscopes.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.
As is standard in specific-factor models, the relative labor allocation across sectors is independent of factor endowments in autarky.
The Heckscher-Ohlin model has established the relation between factor endowments and industry location and trade flows as one of the pillars of trade theory.
International comparative data is presented on (1) trade and economic growth, (2) factor endowments, trade and growth, and (3) trade and economic inequalities.