Division Of Labor, Transaction Efficiency And The Development Of Producer Services

As the rapid growth of modern economy and the change of its structure, services and in particular producer services have been among the fastest growing segments of the economy, and have played an important role in employment growth. While the producer services literature have become increasingly abundant in recent years, the vast majority of which related to the development of producer services are narrowly restricted to descriptive analysis or empirical research, entirely ignoring the radical reasons of its rise and the process of its development. A fundamental understanding of the determinants of the emergency and development of producer services is significant for improving the competitiveness of producer services and promoting the growth of the economy. Rather than neoclassical frameworks, this paper applies new classical division of labor theory, develops a mathematical model, attempting to explore the emergence and competition of producer services and to investigate the determinants. Furthermore, it analyzes the development of the producer services in the directions of deepening and generalization of division of labour. This paper is divided into four chapters. First, it presents a brief review andsummary of the producer services research and new classical approach. Second, with dilemma of the division of labor benefits and transaction costs, the second chapter explains the rise of producer service and discusses the deepening division of the productive services. Third, with the conflict between the diversification of consumption and transaction costs, the third charpter develops an inframarginal- general equilibrium model to study the competition in producer, as well as the generalization of division of labour in producer services. Finally, the conclusions are given and policy recommendations are proposed. This dissertation throws new light on the study of the emergency and development of producer services within the framework of new classical theory, as well as the discussion of the development of the producer services in the directions of deepening and generalization of division of labour, which shows a new perspective.