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Factor endowment information


A factor endowment, in economics, is commonly understood to be the amount of land, labor, capital, and entrepreneurship that a country possesses and can exploit for manufacturing. Countries with a large endowment of resources tend to be more prosperous than those with a small endowment if all other things are equal. The development of sound institutions to access and equitably distribute these resources, however, is necessary in order for a country to obtain the greatest benefit from its factor endowment.

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Factor endowment

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A factor endowment, in economics, is commonly understood to be the amount of land, labor, capital, and entrepreneurship that a country possesses and can...

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Rybczynski theorem

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a rise in the endowment of one factor will lead to a more than proportional expansion of the output in the sector which uses that factor intensively, and...

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Environmental determinism

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American colonies were based on the specific factor endowments available to each colony. These endowments included the climate, soil profitability, crop...

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Diamond model

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global strategy." Factor endowment can be categorized into two forms: "Home-grown" resources/highly specialized resources Natural endowments For example, in...

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Endowment policy

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conventional With Profits endowment policy. The other types of policies - “Unit Linked” and “Unitised With Profits” have a performance factor which is dependent...

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New trade theory

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and factor endowments. Traditional trade models relied on productivity differences (Ricardian model of comparative advantage) or factor endowment differences...

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International trade theory

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differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import...

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Cluster theory

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on different types of knowledge. These clusters include high tech, factor endowment, low cost manufacturing and knowledge service clusters. High tech clusters...

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International economics

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the "Leontief Paradox" (the discovery that, despite its capital-rich factor endowment, America was exporting labour-intensive products and importing capital-intensive...

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Leontief paradox

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theory argues that comparative advantages can develop separately from factor endowment variation (e.g., in industrial increasing returns to scale). Gravity...

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Endowment mortgage

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An endowment mortgage is a mortgage loan arranged on an interest-only basis where the capital is intended to be repaid by one or more (usually Low-Cost)...

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Linder hypothesis

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still occur between two countries having identical preferences and factor endowments (relying on specialization to create a comparative advantage in the...

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Kenneth Sokoloff

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between initial factor endowments, institutions, and economic growth. In particular, he examined the influence of factor endowments on economic development...

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Comparative advantage

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individuals, firms, or nations, which arise from differences in their factor endowments or technological progress. David Ricardo developed the classical theory...

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Technology gap

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theory assumes that the two countries have similar factor endowments, demand conditions, and factor price ratios before trade. The only difference is the...

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International political economy

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Kubota argues that factor endowments explain why developing countries liberalize their trade after they democratize (the abundant factor, labor, supports...

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Business cluster

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often industry-specific. An example is London as financial center. Factor endowment clusters – They are created because a comparative advantage they might...

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Education Endowment Foundation

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The Education Endowment Foundation (EEF) is a charity established in 2011 to improve the educational attainment of the poorest pupils in English schools...

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Wikimedia Foundation

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annual expenses of $169 million, net assets of $255 million and a growing endowment, which surpassed $100 million in June 2021. The Wikimedia Foundation's...

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Analysis of Western European colonialism and colonization

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Kenneth Sokoloff categorized activities, which were driven by regional factor endowments, by determining whether they were associated with high or low levels...

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Latin American economy

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thrived and worked things out. Many parts of the region had favorable factor endowments of deposits of precious metals, mainly silver, or tropical climatic...

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Global Competitiveness Report

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production processes Innovation In the factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources...

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Spanish Empire

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falling into enemy hands. The Spanish Empire benefited from favorable factor endowments from its overseas possessions with their large, exploitable indigenous...

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Deindustrialization

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labor migration, and new economic theory's emphasis on specialized factor endowments, manufacturing moved to lower-cost sites and in its place service...

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Economic history of Latin America

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and South America, it was clear to them that there were significant factor endowments, in particular large deposits of silver and large, stratified populations...

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