Summarization Of Firm-growth Theories And Some Explanations

In empirical world, firm is clear and definite.Therefore, from the occurrence, development stability or decline, obviously firm contains a process of growth. But how to explain firms and the growth of firms theoretically from economics is anything but not easy. The firm theories have been paid attention to a bit hot in the modern economic theories with the research ascend of a bit difficulty. As a result, investigation results in theories in firms are plentiful, but too excrescently mixed.Here, theoretical and further development in firm theories or higher level of synthesized structures is to depend on people's changes in whole theories view inside economics world.The firm theories may become the theoretical logic basis in modern economics. From this, it is of significance to examine the growth of firms, which is the point to be attended to what this paper studies inside.The neoclassical economic theory is a basic frame in modern economics research. Under certain conditions, the equilibrium analysis is still a kind of powerful tool of analysis. This paper is based on neoclassical analysis and basic model on firm growth. Further more, in theoretical research of modern firm theories, organization theory has got its special and superior. Study on the application of organization theories in firm theories will be an important analytic means and a primary purpose for research in this paper.The arrangement of this following is following: firstly it expatiates basic view of world that underlies my economic thoughts and research methods; Then I've represented theoretical framework of neoclassical theories, transaction cost, contract theory, specialization theory, uncertainty theory and other conceptions and analysis related to firm and its growth in relevant paradigm of research. Secondly, enhances the thingking about firm theories after the introduction of such preconditions as how firms are set up and exist, the boundary and structure of firms, target of firms, what is the inner part and how to formalize them. In addition, this paper gives the rethingking on classical theories and tries to synthesize classical theories with neoclassical ones as the foundation to definite some modern economic analytic tool such as value, transaction cost, property, specialization returns and transaction efficiency, with which the paper gives a brief partial equilibrium analysis to the problem of firm growth and gives some describable elucidation to firm and firm-growth with the organization theories. Then, makes use of some empirical research of big firms growing up in the United States to investigate the consistency of the practical materials and the results of research. Finally, the paper discusses some related problems to the topic: distribution in firms, the quantity and the size of firms, frims and workers etc., and represents my own thoughts.Hereon, from classical theory, the author thinks over the conception of transaction cost, and consideres that transaction cost lie in different layer as society, industry and inner firm. Transaction cost can be measured with different scale; and the price is not always the best selection. The core of the paper is then the equilibrium analysis based on these.The conclusion based on partial equilibrium analysis in the paper is: in short-run, after works parted inside firms, it can be empirically settled that the returns from specialization keep increasing, but the marginal return coming from specialization still is decreasing. As a result, function of return is concave. With the function of the studying mechanism, transaction cost from work-partition decreases gradually and with faster velocity. With it taken into account that the transaction cost of whole industry or market always keeps status quo, under the same restriction, a point of equilibrium will be found. The shift of equilibrium point, i.e. variety of the transaction efficiency, equals to the growth of firm.In consideration of inner part of firms, proceeding with the structural analysis, my paper draws conclusi...