Template-Type: ReDIF-Paper 1.0
Author-Name: Kwok Tong Soo
Author-Name-First: Kwok Tong
Author-Name-Last: Soo
Title: The gains from the division of labour and comparative advantage
Abstract: This paper develops a model of international trade based on comparative<br/>advantage and the division of labour. Comparative advantage in intermediate<br/>goods determines the extent of the division of labour, while the division of labour<br/>and comparative advantage in final goods lead to gains from trade. Labour is used<br/>to produce traded intermediate inputs which are used in the production of traded<br/>final goods; therefore trade is both inter- and intra-industry in nature. Large<br/>countries export a smaller share of final goods and a larger share of intermediate<br/>goods than small countries. These predictions find supportive evidence in the data.
Creation-Date: 2013
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/Adam_Smith.pdf
File-Format: application/pdf
Number: 33867696
Classification-JEL: 
Keywords: Division of labour, Comparative advantage, Gains from trade
Handle: RePEc:lan:wpaper:33867696