Factor endowment of natural resource endowment theory

Factor endowment is the basic material condition and input factor needed by agricultural production activities, including both traditional production factors such as natural resources, labor, capital and technology, as well as modern production factors such as system, information and management. Here is a brief analysis of labor, technology and capital elements. The influence on the comparative advantage of regional agricultural products is that by increasing capital investment, changing backward agricultural production conditions, promoting agricultural science and technology progress, and then realizing structural upgrading, the production structure and product structure of regional agricultural products are rationalized and upgraded, which is conducive to the development of agricultural production structure and product structure in the direction of giving better play to comparative advantage industries and products, thus improving the comparative advantage level of regional agricultural products.

Factor endowment has a great influence on the comparative advantage of agricultural production, but with the acceleration of economic globalization, the influence of factor endowment on the comparative advantage of agricultural products in a certain region can be changed, and labor, technology and capital can freely flow and recombine and be used by a dynamic region. Generally speaking, the technical knowledge and management ability of regional labor force, especially the management ability of regional agricultural entrepreneurs, is very important to rebuild the comparative advantage of agricultural products.