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What are factor endowment implications?
Implications of factor endowment:
• Less Developed Countries to specialise and export labour intensive goods, agriculture or commodities. Conversely labour intensive goods have low value added therefore low wages while agriculture goods have low YED and PED
• Enhancing the productivity of factor inputs by better knowledge, skill and training generates growth thus development.
Why do markets work into promoting development? Liberal economists dispute a free market economy works since this gives incentives for self-generating growth. Particularly the
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