Abstract: It is very important to draw general conclusions about effects of factor endowments changes on outputs changes. However, the main researchers, Rybczynski and his followers paid more attentions to the short‐term and static effects. With hypotheses of Cobb‐Douglas production function and others, combined with the historical development data of Chinese 36 industries of the industry sector, this paper analyzed the short‐term, long‐term, and complete effects of factor endowment changes on economic growth. Conclusion reveals that, an increase in the endowment of a factor will lead to an increase in the industry whose producing process employed more such factor than other industries, and a decrease in other industries in the short run, while an increase in the endowment of a factor will lead to an increase in the outputs of other industries whose production employed relatively less such factor in the long run. The paper also drew many important conclusions concerned on factor‐intensive classifications of industries and orientations of Chinese population policy.
Keywords: Changes in Factor Endowment; Factor Intensity; Economic Growth;
JEL Classification: O11; O41; C33; E61