Logo
Munich Personal RePEc Archive

Trade Liberalization, Division of Labor, and Firm Productivity

Kamei, Keita (2013): Trade Liberalization, Division of Labor, and Firm Productivity.

[thumbnail of MPRA_paper_50301.pdf]
Preview
PDF
MPRA_paper_50301.pdf

Download (81kB) | Preview

Abstract

In this paper, we construct a simplified general oligopolistic equilibrium (GOLE) model, in which Smith's (1776) famous theory of division of labor is embedded. In the absence of labor market integration with trading countries, we show that trade liberalization promotes a reduction of the number of firms in each country and a deeper division of labor, thus increasing firm productivity and improving welfare. Our model suggests a new interpretation of the trade-induced firm productivity effect.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.