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Economic Development and the Division of Labor


This innovative new book from Xiaokai Yang introduces students to development economics through the lens of inframarginal and marginal analyses, and shows how this way of thinking has influenced a shift back to classical economic theory within the field of economic development. Yang offers a thorough analysis of trade and macroeconomics not to be found in comparable works, and focuses on institutional and transaction cost issues of critical interest to development economists.

Xiaokai Yang is a Personal Chair Professor in the Department of Economics at Monash University and a Fellow of the Academy of Social Sciences in Australia. His research papers have appeared in The American Economic Review, Journal of Political Economy, Journal of Economics, and other journals. He is the author of Economics: New Classical versus Neoclassical Frameworks (Blackwell, 2000).

1. Introduction.

Part I: Geography and Microeconomic Mechanisms for Economic Development:.

2. Geography and Economic Development.

3. Driving Force I: Exogenous Comparative Advantage and Trading Efficiency.

4. Driving Force II: Endogenous Comparative Advantage and Trading Efficiency.

5. Driving Force III: Economies of Scale and Trading Efficiency.

6. Coexistence of Endogenous and Exogenous Comparative Advantages and Patterns of Development and Trade.

7. Structural Changes, Trade, and Economic Development.

Part II: The Institution of the Firm, Endogenous Transaction Costs, and Economic Development:.

8. Economic Development, the Institution of the Firm, and Entrepreneurship.

9. Endogenous Transaction Costs, Contract, and Economic Development.

10. Transaction Risk, Property Rights, Insurance, and Economic Development.

Part III: Urbanization and Industrialization:.

11. Urbanization, Dual Structure between Urban and Rural Areas, and Economic Development.

12. Industrialization, Structural Changes, Economic Development, and Division of Labor in Roundabout Production.

Part IV: Dynamic Mechanisms for Economic Development:.

13. Neoclassical Models of Economic Growth.

14. Economic Development Generated by Endogenous Evolution in Division of Labor.

15. Social Experiments and Evolution of Knowledge of Economic Development.

Part V: Macroeconomics of Development:.

16. Investment, Saving, and Economic Development.

17. Money, Division of Labor, and Economic Development.

18. Endogenous Business Cycles, Cyclical Unemployment, and Endogenous, Long-run Growth.

19. Economic Transition.