International trade and the division of labor

Soo, Kwok Tong (2018) International trade and the division of labor. Review of International Economics, 26 (2). pp. 322-338. ISSN 0965-7576

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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.

Item Type:
Journal Article
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Review of International Economics
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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. which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
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23 Oct 2017 13:54
Last Modified:
13 Sep 2022 00:49