Regional Labor Division under the Dominant of Scale Economy

Under the environment of the economic integration, the flow of product factor is being enhanced, which results in new aggregation and diffusion. The paper brings out that regional labor division under the dominant of scale economy is the basic theory of economic integration. It also studies the generation, significance and universality of economy of scale-labor division. Then the paper points out scale-economy labor division is the superior form, while the labor division of comparative advantages is the inferior form. Furthermore, the paper discusses the connotation for studying the strategy and policies of scale-economy labor division.