The Significance of the Comparative Advantages in Factor Endowment to the Industrial Structure

Construct and analyze a static two-sector model, focused on the significance of the factor endowment structure on the optimal industrial structure. Find the optimum industry structure should be born within and is in direct ratio to the national factor endowment, because of the guiding role on the optimal allocation of resources. And the emergence of production services will increase the proportion of manufactures by alleviating the plight of the lack of capital stock. Developing the production services in those countries will help alleviate the, and will speed up the upgrading of industrial structure.Also analyze the evolution of industrial structure from the dynamic model.