Informal Institution's Influence On The Upsurge And Decline Of Shanxi Merchants

Shanxi merchants in the Ming and Qing Dynasties attained glorious commercial achievements. But Shanxi merchants gradually went felling with the change of society and economy environment, the cause of which were both objective and subjective ones . Having quoted a vast number of historical materials and used the history institutional economy, the article initially explores the informal institution initiated by shanxi merchants, and its role in prospering and mining shanxi merchants. At first, the article clarifies the connotation of informal institution and hs relation with fonnal institution. Secondly, the article explicates the four parts contents about informal institution initiated by shanxi merchants and holds that the traditional thought of Confucian School and the folk commercial spirits of 'worshiping commerce and putting stress on money' is the key content of informal institutioa Thirdly, it analyses shanxi merchants 'organization and management systems restrained by informal institution initiated by shanxi merchants . The last two parts of this article analyses thoroughly the inner link between informal institution and shanxi merchants' upsurge and decline using game theory and study method of Cost-profit The article points that informal institution initiated by shanxi merchants is internal and key factor which affected upsurge and decline of shanxi merchants.