On Socio-economic Roles and Specialization

Robert P. Gilles (), Emiliya Lazarova and Pieter Ruys
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Robert P. Gilles: Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam

No 06-035/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: 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.

Keywords: Economic development; social division of labor; non-market economies. (search for similar items in EconPapers)
JEL-codes: D02 O12 (search for similar items in EconPapers)
Date: 2006-03-31
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Journal Article: ON SOCIO-ECONOMIC ROLES AND SPECIALISATION (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20060035

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