Maryland map for In a typical developing country, this factor intensity is incompatible with its factor endowment. Developing countries are more abundant in labor than in capital, so the price of capital should be relatively higher than the price of labor. Factor price distortions, however, render labor relatively more expensive leading to capital-intensive production and hence to unemployment. Eliminating the factor price distortions would lead to more gainful employment and therefore to a reduction in inequality and poverty. Hence, the policy recommendation is to liberalize the labor and capital markets along with all the other input markets to allow factor prices to reflect the scarcity costs of the factors of production. Since inequality in the distribution of assets is a major contributor to income inequality, redistribution of the existing assets and/or creating new assets and channeling them to the poor in the economy is also a policy option. It might be politically undesirable to confiscate in one form or other the existing assets and redistribute them to the poor. Maryland map 2016.