Division Of Labor, Trading And Development Of Tertiary Industry

With the rising of per capita GDP, the proportion of the tertiary industry in the GDP increases steadily. Why does the tertiary industry increase? The answers available to this question have stemmed from the Demand-Supply Model of the Neo-classic economics. By using the research method of New Institutional Economics and Classical economics, this thesis studies the reason why the tertiary industry grows and provides a new answer. This thesis believes that the development of the tertiary industry is the result of the deepening of the division of labor and the expansion of transaction net. In the meanwhile, the development of the tertiary industry promotes the evolution of the division of labor and the expansion of transaction net. With the deepening of the division of labor, some industries have broke up from the primary industry or the second industry and then become the sectors of the tertiary industry. Specialization has caused the rapid developing of these sectors. With the expansion of transaction net, the transaction cost will increase rapidly. To decrease the transaction cost, some new sectors of the tertiary industry spring up.As the main factors that influence the division of labor and transaction are institutions, population, natural environment and so on, and so institutions, population, natural environment and so on are the main factors that influence the tertiary industry. This thesis explains at some length these factors. At last, by using the conclusion of this thesis, the author explains the factors that influence the development of the tertiary industry in the developed countries and China.