Alienation of Title-Circulation Right: A Cross-Border Economic Game Hypothesis Based on the Theory of Extractive Institutions

Abstract

The 2024 Nobel Memorial Prize in Economic Sciences established the "inclusive institutions—extractive institutions" framework for explaining the rise and fall of nations, yet its analytical boundary is largely confined to the internal political-economic structure of individual sovereign states. The cross-border dimensions of institutional extraction—operating through global financial pipelines, asset pledge arrangements, and title-circulation rules—remain undertheorized. Building on this canonical framework, this paper introduces the Title-Circulation Right (TCR; 权属流通权) as a supplementary analytical variable and proposes a Cross-Border Institutional Extraction Hypothesis to explain the emergence of novel asymmetric global allocation mechanisms, including commodity custody, supply-chain certificate circulation, and trade time-lag arbitrage. In parallel, the paper engages the creative-destruction research recognized by the 2025 Nobel Memorial Prize: when circulation rights are institutionally appropriated, the institutional preconditions of creative destruction—appropriability of innovation returns, contestable market entry, and openness to new ideas—are systematically eroded, and growth faces the long-run risk of degenerating into involutionary dynamics. This paper observes that, with the expansion of digital entitlement confirmation, warehouse-receipt financialization, cross-border supply-chain certificates, and multi-layered derivative structures, the locus of value allocation has shifted from physical production to financial pipelines embedded in entitlement confirmation, registration, pledge, profit-sharing, and multi-tier circulation. The analysis therefore moves from an "ownership-centered narrative" toward a "circulation-right-centered narrative": even when legal ownership of physical assets remains unchanged, value extraction can persist if the derived circulation rights are monopolized by external actors. Ownership matters, but it does not exhaust allocative power; circulation rights constitute the other dimension of power long obscured by the old paradigm. At the mechanism level, the paper constructs three interrelated analytical components: the Valve-Pipeline System (VPS; 阀门-管道体系), characterizing the institutional infrastructure of cross-border financial pipelines; the Shadow Currency System (SCS; 影子货币体系), depicting a dual-anchored bookkeeping, circulation, and storage instrument; and the Surplus-Value Re-Flow Lock-in (SVRL; 剩余价值回流锁定) mechanism,

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