Circulation Costs, Transaction Costs and the Creation of Economic Space:Modern Construction of Micro Circulation Theory of Das Kapital

Lu Pinyue

Journal of Finance and Economics Vol. 42, Issue 01, pp. 40 - 50 (2016)  DOI:10.16538/j.cnki.jfe.2016.01.004

Abstract

Labor in circulation domain includes productive labor and pure circulative labor as unproductive labor.The latter not only produces nothing for labor value,but also consumes the labor value known in production domain as circulation costs,which echo the notion of transaction costs in western economics.The viewpoint that claims only the labor producing value is meaningful while the labor consuming value completely makes no sense,is wrong.The aim of labor producing value is nothing but to be used and consumed,part of which will be undoubtedly consumed in the circulation process in economic system.However,this kind of labor creates the economic space in which social economics runs and develops.Economic space is promised by productive labor of science,technology,culture innovation,but is actually created by transaction labor in circulation domain.In the circulation process,it creates two kinds of economic space driven by two forces,constructive and destructive economic space,and the second paradox of North could be explained by the movement of unity of the opposite economic space.

Keywords

transaction cost; circulation cost; economic space; the second paradox of North