Division of labour is the specialization of cooperative labour in specific, circumscribed tasks and roles, intended to increase the productivity of labour. Historically the growth of a more and more complex division of labour is closely associated with the growth of total output and trade, the...

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....