In
economics a country's
factor endowment is commonly understood as 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, all other things being 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.