faktorendowment
Factor endowment, also referred to as Faktorendowment in German, is a concept in economics that describes the total quantity and quality of the factors of production available to an economy. These factors are used to produce goods and services and help explain differences in economic performance, production possibilities, and trade patterns. The term is central to growth theory, development economics, and international trade.
The traditional factors of production are land (natural resources and geographic advantages), labor (the size and
In trade theory, endowments help explain comparative advantage. The Heckscher-Ohlin framework posits that countries export goods
Limitations exist: endowment-based explanations may overlook technology, institutions, policy, and preferences, and empirical results can vary.