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International Division Of Labour In The Context Of Globalisation: The Case Of The Czech Republic

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  • Michal TVRDON

Abstract

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 rise of capitalism, and of the complexity of industrialization processes. The revealed comparative advantage (RCA) measures the intensity of trade specialisation of a country within the world. We try to analyse Czech foreign trade on the base of indices of revealed comparative advantage with respect to world exports into the EU-27 and with the EU-27 Member states and over time. Most important Czech export and import products into EU are different kinds of machines, electrical equipment, and transport vehicles (car industry) and related parts. Presented analysis also indicates that Czech Republic has revealed comparative advantage in SITC sections of 6 a 7 only.

Suggested Citation

  • Michal TVRDON, 2010. "International Division Of Labour In The Context Of Globalisation: The Case Of The Czech Republic," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(4(14)/ Wi), pages 359-369.
    • Handle: RePEc:ush:jaessh:v:5:y:2010:i:4(14)_winter2010:p:124
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    Keywords

    division of labour; comparative advantage; absolute advantage; revealed comparative advantage; Czech Republic;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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