Open AccessAllocation of Sea Space Resources Based on Factor Endowments: a Numerical Example
Author(s) -
Minjie Kang
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/696/1/012020
Subject(s) - endowment , factor endowment , factor (programming language) , space (punctuation) , factors of production , resource allocation , resource (disambiguation) , economics , natural resource economics , production (economics) , econometrics , operations research , computer science , environmental economics , microeconomics , environmental science , mathematics , comparative advantage , international trade , market economy , computer network , philosophy , epistemology , programming language , operating system
A model of sea space resource allocation is constructed based on the idea of factor endowment theory. The effect of the model is explained by a numerical example. According to the theory of factor endowment, each sea area has the advantage of abundant factor intensive sea area utilization type. Each region should put more factors into the advantageous sea area utilization type. Compared with the output of the sea area utilization type with no advantages produced on its own self, the opportunity cost of obtaining the output of the sea area utilization type with no advantages through exchange is lower. The result of the numerical example shows that the total output of the two sea areas increases based on factor endowment allocation of sea resources. Both regions also achieved a win-win situation, with each region increasing its income by exchanging the output of sea use.