ECO342Y1 Study Guide - Final Guide: Robert Fogel, Demographic Dividend, Social Inequality
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In your answer, describe what factor endowments are and why they are important for economic growth. In addition, explain the mechanisms by which factor endowments affect economic growth using examples from. Definition: factor endowments are defined by s&e as soil, climates and native population serving as potential human capital. Broader definition in general is usually: land, labor, capital and entrepreneurship. Human capital: areas with highly specialized, high quality soil producing coffee, sugar etc were ones that required most slaves, and the ones that didn"t specialize needed less slaves (canada, new. Also were the most productive colonies, highest per capita income in new world, were. Largest inequality in these countries now however because of initial disproportion in wealth, caused lag in growth for these nations. Disproportionate in terms of sugar owners who could gather large # of slaves, but also because of political restrictions, so even after slavery there were barriers to opportunities for general masses.
