Evolution of industrial groups under the situation of specialized division

This paper,from the analysis of the labor division theory of Adam Smith,the labor division theory of Marxist and the economic division theory of the new era,studies the causes of the industrial group formation from the angle of specialized division.The author makes clear the interactional mechanism in the specialized division and industrial group evolution,and believes that highly specialized division through organization and technical innovation can promote the formation and development of industrial groups,and at the same time the development of industrial groups can,in turn,improve the trade efficiency and trade cost so as to further enhance division evolution.The results from the analysis show that the formation of industrial groups is the product of labor division,and there is a high unity between the development of labor division and specialization and the formation of industrial groups.