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On Socio-economic Roles and Specialization

Author

Listed:
  • Robert P. Gilles

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Emiliya Lazarova

    (Department of Econometrics, Universiteit van Tilburg)

  • Pieter H.M. Ruys

    (Universiteit van Tilburg)

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.

Suggested Citation

  • Robert P. Gilles & Emiliya Lazarova & Pieter H.M. Ruys, 2006. "On Socio-economic Roles and Specialization," Tinbergen Institute Discussion Papers 06-035/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20060035
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic development; social division of labor; non-market economies.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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