What has research conducted in India concluded regarding factor proportions?
Understand the Problem
The question is asking about research findings related to factor proportions in India and their impact on agricultural outputs and industries. To answer this, one would need to reference economic research concerning the influence of factor proportions on agricultural and industrial performance in India.
Answer
India's trade is influenced by factor endowments per Heckscher-Ohlin theory.
Research in India regarding factor proportions, according to the Heckscher-Ohlin theory, concludes that India's trade patterns are determined by factor endowments, where a country specializes in the production of goods that utilize their abundant factors of production.
Answer for screen readers
Research in India regarding factor proportions, according to the Heckscher-Ohlin theory, concludes that India's trade patterns are determined by factor endowments, where a country specializes in the production of goods that utilize their abundant factors of production.
More Information
The Heckscher-Ohlin theory is based on comparative advantage, predicting that countries will export goods that make intensive use of locally abundant factors. In India's case, labor is a key abundant resource impacting trade patterns.
Sources
- Growth, Factor Endowment and Trade of India-A Review of Literatures - researchgate.net
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