Rights statement: This is the peer reviewed version of the following article: Soo KT. International trade and the division of labor. Rev Int Econ. 2018;26:322–338. https://doi.org/10.1111/roie.12333 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/roie.12333/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - International trade and the division of labor
AU - Soo, Kwok Tong
N1 - This is the peer reviewed version of the following article: Soo KT. International trade and the division of labor. Rev Int Econ. 2018;26:322–338. https://doi.org/10.1111/roie.12333 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/roie.12333/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
PY - 2018/5
Y1 - 2018/5
N2 - This paper develops a model of international trade based on the division of labor under perfect competition. International trade, by eliminating the duplication of coordination costs, leads to a greater variety of tasks, each produced at a larger scale than in autarky. The greater variety of tasks implies greater division of labor and hence gains from trade. Extending the model to two factors of production yields the additional result that if the two countries are sufficiently similar in their relative endowments, then both factors of production can experience gains from trade.
AB - This paper develops a model of international trade based on the division of labor under perfect competition. International trade, by eliminating the duplication of coordination costs, leads to a greater variety of tasks, each produced at a larger scale than in autarky. The greater variety of tasks implies greater division of labor and hence gains from trade. Extending the model to two factors of production yields the additional result that if the two countries are sufficiently similar in their relative endowments, then both factors of production can experience gains from trade.
KW - Division of labour
KW - task trade
KW - Gains from trade
U2 - 10.1111/roie.12333
DO - 10.1111/roie.12333
M3 - Journal article
VL - 26
SP - 322
EP - 338
JO - Review of International Economics
JF - Review of International Economics
SN - 0965-7576
IS - 2
ER -