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An Empirical Study on the Division of Labour and Economic Structural Changes

In: The Economics of E-Commerce and Networking Decisions

Author

Listed:
  • Monchi Lio

    (National Sun Yat-sen University)

  • Meng-chun Liu

    (Chung-Hua Institution for Economic Research)

Abstract

It has long been recognized by economists that there is a systematic connection between the progress in economic productivity and the growth of cities. Yang and Rice (1994) develop a general equilibrium model to explain this intrinsic connection. Their model shows that in an economy, one of the functions of cities is to be able to improve transaction efficiency, and thus to expand the level of division of labour. People become more specialized as the division of labour evolves, and in this process labour productivity improves due to economies of specialization.

Suggested Citation

  • Monchi Lio & Meng-chun Liu, 2003. "An Empirical Study on the Division of Labour and Economic Structural Changes," Palgrave Macmillan Books, in: Yew-Kwang Ng & Heling Shi & Guang-Zhen Sun (ed.), The Economics of E-Commerce and Networking Decisions, chapter 14, pages 298-310, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-4039-3837-4_14
    DOI: 10.1057/9781403938374_14
    as

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