Theoretical Study of the International Division of Labor and the Industrial and Trade Policy under Economies of Scale and Imperfect Competition

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The purpose of this study is to investigate how the economic integration induced by trade liberalization and falling trade costs affects each country's industrial structure, trade pattern and welfare. In the analysis of this study, the special emphasis is placed on the role of economies of scale and imperfect competition as a determinant of the international division of labor. This study successfully sheds light on the effects of economic integration on each country in the general equilibrium framework with economies of scale and imperfect competition.