On Socio-Economic Roles And Specialisation
Xiaokai Yang's theory of economic specialization under increasing returns to scale is a formal development of the fundamental Smith-Young theorem on the extent of the market and the social division of labor. In this theory specialization and, thus, the social division of labor is firmly embedded within a system of perfectly competitive markets. This leaves unresolved whether and how such development processes are possible in economies based on more primitive, non-market organizations. In this paper we discuss a general relational model of economic interaction. Within this non-market environment we discuss the emergence of economic specialization and eventually of economic trade and a social division of labor. We base our approach on three levels in organizational development: the presence of a stable relational structure; the presence of relational trust and subjective specialization; and, finally, the emergence of objective specialization through the institution and the social recognition of economic roles.
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Volume (Year): 25 (2006)
Issue (Month): 2 (06)
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- Xiaokai Yang & Jeff Borland, 2005.
"A Microeconomic Mechanism For Economic Growth,"
World Scientific Book Chapters,in: An Inframarginal Approach To Trade Theory, chapter 18, pages 409-436
World Scientific Publishing Co. Pte. Ltd..
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