This paper constructs a dynamic general equilibrium model in which economic growth is explained by the evolution of the division of labor. The relationships among the accumulation of human capital, the evolution of the division of labor, endogenous comparative advantage, trade dependence, the...

This paper considers the effects of the division of labor on economic growth and welfare in a general equilibrium environment where changes in individual specialization and product development can proceed simultaneously. The nature of the dynamic equilibrium is shown to depend on the interaction...