The Research To The Capital Heterogeneity In The Evolution Of Division Of Labor

Starting with the relations between capital and division of labor, this paper demonstrated the following viewpoints: division of labor is the prime mover of economic growth; economies of the division of labor are in a dilemma between economies of specialization and transaction costs because of capital heterogeneity. Making a choice between economies of specialization and transaction costs may result in the growth of the level of specialization and division of labor. And at the same time, the reliable varieties of capital may increase with the higher level of specialization of every one. This predicates that the social reliable capital (recourses) becomes more and more. This makes the level of capital heterogeneity to be higher than before with the development of division of labor. The increase of the level of division of labor and the capital heterogeneity leads to the increase of correspondence of the social network the same time, and there lies in the possibility of crisis. But the crisis is always success crisis because the crisis leads the correspondence of the social network to be more reliable. Material capital has the character of the inactive currency. The appearance of currency is the internal demand of economic growth. The appearance of currency improves the efficiency of transaction and promotes the development of division of labor, and also gives a united basis of transaction and a standard of value. This lowers the information costs and improves the efficiency of transaction. And the improvement of the efficiency of transactions promotes the increase of the level of division of labor.