Abstract
The present paper starts from the observation that there is still no analysis of private law as a basis for international trade, i. e. private transactions between noncompatriots (cf. Schmidt-Trenz 1990). Although authors like Buchanan, Hayek, Williamson, Böhm and Eucken have talked about the significance of a system of private law for the coordination of private transactions, they left out of their analysis the domain of protective state activity in international private business transactions vis-à-vis the multitude of legal orders and national enforcement organs. p ]It is the intention of this paper to focus upon the problems of the coordination of private foreign trade activities in the shadow of the territoriality of law. Specifically, it is asked: What are the causes for the fragmentation of private law in the world, and what are the consequences of the territoriality of law for the coordination of decisions concerning transactions between non-compatriots? The paper also deals with the question of how international coordination-efficiency can be fostered by international constitutional policy.
Similar content being viewed by others
References
Ansari, J. A. (1986)The Political Economy of International Economic Organisation.Boulder, Colo.:Rienner.
Auster, R. D. and M. Silver (1979)The State as a Firm. Economic Forces in Political Development. Boston, Dordrecht: Kluwer Nijhoff.
Bean, R. (1973) “War and the Birth of the Nation State.”Journal of Economic History 33: 203–221.
Bernholz, P. and M. Faber (1986) “Überlegungen zu einer normativen ökonomischen Theorie der Rechtsvereinheitlichung.”Rabels Zeitschrift für ausländisches und internationales Privatrecht 50: 35–60.
Bogomolov, O. T. (1976) “Integration by Market Forces and Through Planning.” In: F. Machlup (ed)Economic Integration: Worldwide, Regional, Sectoral. London: 305–307.
Böhm, F. (1973) “Eine Kampfansage an Ordnungstheorie und Ordnungspolitik.”ORDO 24: 11–48.
Böhm, F. (1980a)Freiheit und Ordnung in der Marktwirtschaft. Mestmäcker (ed) Baden-Baden: Nomos.
Böhm, F. (1980b) “Privatrechtsgesellschaft und Marktwirtschaft.” In: Böhm (1980): 105–168.
Buchanan, J. M. (1975)The Limits of Liberty. Between Anarchy and Leviathan. Chicago and London: The University of Chicago Press.
Buchanan, J. M. (1986)Liberty, Market and State. Political Economy in the 1980s. Brighton: Harvester Press.
Buchanan, J. M. and G. Tullock [1974 (1962)]The Calculus of Consent: Logical Foundations of Constitutional Democracy. Ann Arbor: The University of Michigan Press.
Cauley, J. (1980) “International Political Economy.” In: T. Sandler (ed)The Theory and Structures of International Political Economy. Boulder: 17–29.
Conybeare, J. A. C. (1980) “International Organization and the Theory of Property Rights.”International Organization 34: 307–334.
Elias, N. (1980) “Über den Proze\ der Zivilisation. Soziogenetische und psychogenetische Untersuchungen. Band I:Wandlungen der Gesellschaft. Entwurf zu einer Theorie der Zivilisation. Ulm, Frankfurt: Suhrkamp.
Euken, W. (1950)The Foundations of Economics. London: Hodge.
Eucken, W. (1951)The Unsuccessful Age. London: Hodge.
Eucken, W. (1952)Grundsätze der Wirtschaftspolitik. Bern, Tübingen: Mohr.
Frey, B. S. (1985)Internationale Politische Ökonomie. München: Vahlen.
Friedman, D. (1977) “A Theory of the Size and Shape of Nations.”Journal of Political Economy 85: 59–77.
Furubotn, E. and S. Pejovich (1972) “Property Rights and Economic Theory: A Survey of Recent Literature.”Journal of Economic Literature 10: 1137–1162.
Galanter, M. (1981) “Justice in Many Rooms: Courts, Private Ordering, And Indigenous Law.”Journal of Legal Pluralism and Unofficial Law 19: 1–47.
Hayek, F. A. v. (1969)Freiburger Studien. Gesammelte Aufsätze. Tübingen: Mohr.
Hayek, F. A. v. (1973)Law, Legislation and Liberty. Volume I, Rules and Order, Chicago: The University of Chicago Press.
Heuss, E. (1959) “Klassischer Freihandel oder Integration?”ORDO 11: 95–115.
Hobbes, T. [1651, (1957)]Leviathan or the matter, form and power of a commonwealth ecclesiastical and civil. Oxford: Basil Blackwell.
ICC (International Chamber of Commerce) (1986)Jahresbericht 1985: Köln, Paris.
Kant, I. (1958)Zum Ewigen Frieden. Forschung und Wirtschaft 7: 9–53.
Kronman, A. T. (1985) “Contract Law and the State of Nature.”Journal of Law, Economics, and Organization 1: 4–32.
Langen, E. (1981)Transnationales Recht. Heidelberg: Gesellschaft, Recht und Wirtschaft.
Leipold, H. (1990) “The Neoliberal Theory of Order.”Constitutional Political Economy 1: 47–65.
Levi-Strauss, C. (1969)The Elementary Structures of Kinship. London: Weldhem, Rodney.
Mcneil, I.R. (1978) “Contracts: Adjustment of Long-Term Economic Relations under Classical, Neoclassical, and Relational Contract Law.”Northwestern University Law Review 72: 854–905.
Merryman, J. H. (1978) “On the Convergence (and Divergence) of the Civil Law and the Common Law.” In: M. Cappelletti (ed)New Perspectives of a Common Law of Europe: 195–233.
Moss, L. S. (1980) “Optimal jurisdiction and the economic theory of the state: Or, anarchy and one-world government are only corner solutions.”Public Choice 35: 17–26.
Neuhaus, P. H. and J. Kropholler (1981) “Rechtsvereinheitlichung - Rechtsverbesserung?”Rabels Zeitschrift für ausländisches und internationales Privatrecht 45: 73–90.
Nozick, R. (1974)Anarchy, State, and Utopia. New York: Basic Books.
Olson, M. (1965)The Logic of Collective Action. Public Goods and the Theory of Groups. Cambridge, Mass.: Harvard University Press.
Pejovich, S. (ed) (1987)Socialism: Institutional, Philosophical and Economic Issues. Dordrecht et. al.: Kluwer Nijhoff.
Petersmann, E.-U. (1986) “Trade Policy as a Constitutional Problem. On the “Domestic Policy Functions” of International Trade Rules.”Au\enwirtschaft 41: 405–439.
Robbins, L. (1937)Economic Planning and International Order. London: Macmillan.
Röpke, W. (1950)International Economic Disintegration. London, Edinburgh, Glasgow.
Röpke, W. (1954)Internationale Ordnung—Heute. Erlenbach—Zürich—Stuttgart: Rentsch.
Röpke, W. (1957) “Integration und Disintegration in der internationalen Wirtschaft.” In: H. V. Beckerath, F. W. Meyer, W. Müller-ArmackWirtschaftsfragen der freien Welt: 493–501.
Röpke, W. (1959)International Order and Economic Integration. Dordrecht: Kluwer Nijhoff.
Röpke, W. (1979)Die Lehre von der Wirtschaft. Bern and Stuttgart: Haupt.
Sack, R. (1986)Human Territoriality. Its Theory and History. Cambridge: Cambridge University Press.
Sannwald, R. and J. Stohler (1958)Wirtschaftliche Integration. Theoretische Voraussetzungen und Folgen eines Europäischen Zusammenschlusses. Tübingen: Mohr.
Schenk, K. E. (1982)Institutional Choice und Ordnungstheorie. Tübingen: Mohr.
Schmidtchen, D. (1984) “German Ordnungspolitik as Institutional Choice.”Journal of Institutional and Theoretical Economics (JITE) 140: 54–70.
Schmidtchen, D. (1987) “Hayek on Liberty and the Rule of Law: The Road to Serfdom Revisited.” In: S. Pejovich (1987): 115–144.
Schmidtchen, D. (1990) “Time, Uncertainty and Subjectivism: How to Get Law-and-Economics Out of the Steady-State.” Paper prepared for the Second Symposion on the Economic Analysis of Civil Law, Travemünde (West Germany).
Schmidtchen, D. and H. J. Schmidt-Trenz (1989) “Private Law, the World Possibility Frontier and the Need for an International ‘Private Law Community’: German Theory of Order and Constitutional Economics at Work.”Working Paper Series, Center for the Study of the New Institutional Economics. Dept. of Economics, University of the Saarland.
Schmidtchen, D. and H.-J. Schmidt-Trenz (1990) “The New Institutional Economics of International Transactions.”Jahrbuch für Neue Politische Ökonomie 10(forthcoming).
Schmidt-Trenz, H.-J. (1989) “The State of Nature in the Shadow of Contract Formation. Adding a Missing Link to J. M. Buchanan's Social Contract Theory.”Public Choice 62: 237–251.
Schmidt-Trenz, H.-J. (1990)Au\enhandel und Territorialiät des Rechts. Grundlegung einer Neuen Institutionenökonomik des Aussenhandels. Baden-Baden: Nomos.
Steiner, H. (1977) “The structure of a set of compossible rights.”Journal of Philosophy 74: 767–775.
Vanberg, V. (1988) “Ordnungstheorie” as Constitutional Economics—The German Conception of a “Social Market Economy.”ORDO 39: 17–31.
Whynes, D. K. and R. A. Bowles (1981)The Economic Theory of the State. Oxford: Robertson.
Williamson, O. E. (1985)The economic institutions of capitalism: firms, markets, relational contracting. New York: Macmillan.
Author information
Authors and Affiliations
Additional information
We are indebted to Jack Wiseman for helpful comments.
Rights and permissions
About this article
Cite this article
Schmidtchen, D., Schmidt-Trenz, HJ. The division of labor is limited by the extent of the law. Constit Polit Econ 1, 49–71 (1990). https://doi.org/10.1007/BF02393240
Issue Date:
DOI: https://doi.org/10.1007/BF02393240