Division Of Labor, Market And Intermediary Organizations

With the development of socialist market economy system and the participation in WTO, our nation is facing a flood of questions about how to match with the economy system of developed countries when we construct our own. In the process of improving our market economy system and commuting the function of government, the problem about how to develop Chinese socialist market intermediate organization better more become increasingly important.To all market economy system, besides the method of direct deal, the trade existed in the production and the consumption could also be accomplished by all sort of intermediate organizations. According to the development of market economy system, these intermediate organizations become more and more complicated and showing a motive evolutional process. Why are so much intermediate organizations existed in the market? Why the trade is dealed by the intermediate organization besides the directly deal? What kind of power promoted the generation of all these intermediate organizations? Why the intermediate organizations presenting a continually changed form? What determined the intermediate organization's type and quantity? Do China need the intermediate organization? If need, what kind of intermediate organizations is needed? how to develop and perfect the intermediate organizations under the reform of Chinese socialist market economy system? All of these questions are being discussed with an attempt to answer in this paper. The division of labor is the meeting point of main problemsdiscussed in this paper. The deepening process of the division of labor formed the evolution of the market. We couldn't even explain the generation and development of the intermediate organization if ignored the deepening process of the division of labor. The division of labor lead the evolution of market on one hand, it promoted the development of the intermediate organization on the other hand. The division of labor worked as a bridge that directly connected the evolution of market with the development of the intermediate organization. Thus the relationship between the development process of the intermediate organization and the process of the market evolution become more intimate. The joint of them is the division of labor. If being studied with a historical and evolutional logic, the development process of market and the intermediate organization is doubtlessly a process of institutional changes. The motive power by which the new institution born and the old died are belong to the contrast between the reward and the cost of the division of labor. It means that when the reward of division of labor is much more than the cost of the division of labor, the surplus will become the motive power. The power generates the intermediate organization, changes the layout of the division of labor. market. Again, we found the important of the division of labor in our study: the problem of market evolution and the intermediate organization's development can be abstractly simplified as a problem of the division of labor. The division of labor become the key point in our discussion. It is the division of labor that promoted the born of professional organization and the evolution of market. Why the division of labor and the market development take an evolutional method. To answer this question we must drew into the conception of transaction cost. The quantity of transaction cost determined the degree of the division of labor, and thus determined the professional organization's scale,hierarchy and the market's structure. The evolution of the market and the development of professional organization are all the result of the power contrast between the reward of the division of labor and the cost of it.Efficiency is one of the core problems in modern economics. This paper thought of the efficiency too when studying the development process of the intermediate organization. The division of labor improved the transaction efficiency and enhanced the welfare of each side. Market's generation is...