A Study On Circulation Industry Development In Ethnic Minority Areas

With the rapid development of Chinese economy and continuous improvement of the market economic system resulting from the reform and opening up for more than30years, circulation industry's status and role become increasingly important-as a pillar industry, leading industry and basic industry-in the national economy and social development. Nevertheless, due to the particularities of the ethnic minority areas, circulation industry is lagging behind, which has become the bottleneck for economic and social development of these areas. The particularities of the ethnic minority areas are reflected in the ethnic particularities and regional ones, including particularities of the location, environmental sources, transportation, economic base, cultural tradition and policies. These particularities are inevitably embodied in the evolution and development of circulation industry as follows:scattered circulation subjects and small operation scale; complex circulation goods and mandatory policies; uneven regional development and small overall scale; backward circulation techniques and low circulation effectiveness; low level of circulation division of labor and extensive development; lack of flexible policies for circulation industry and inefficient developing impetus.This paper aims to solve the practical issues in the development of circulation industry in ethnic minority regions by combining with the current particularities of these regions. It focuses on the evolution mechanism, developing level and influencing factors of their circulation industry, and, based on the experiences of developed countries, puts forward relevant strategies to promote the development of circulation industry. This not only enriches the theory research on circulation, but also has important practical significance on bridging the gap between minority regions, promoting continuous and healthy development of economy, and maintaining social harmony as well as stability.Firstly, the paper reviews related domestic and foreign literature on circulation industry. It makes a horizontal comparison on domestic and overseas circulation industries, and specifically analyzes the development and characteristics of circulation industry in the UK, U.S., Japan and China. It summarizes foreign experiences that could be borrowed by China for the development of circulation industry:industrialization and urbanization are its economic foundation; free trade and market economic system are its institutional guarantee and government's primary task is to create a fair and competitive free trade market; technological and institutional innovation are its core issues; state regulation is the necessary means and it is necessary for China to continuously improve the macro-control system for the circulation industry. Furthermore, the paper makes in-depth analyses on the connotation and characteristics of circulation industry in minority regions, and on the evolution mechanism and influencing factors by using division-of-labor theory and transaction cost theory. The conclusion is as follows:the evolution and development of circulation industry lies in the fact that the circulator obtains professional profits by saving circulation cost for producers and consumers, hence, the lower the circulation organizing cost, the higher the profits. The particularities of the ethnic regions result in low level of division of labor, backward economic development, high transaction cost and low circulation efficiency, which reduce professional gains and increase organizing cost. As a result, it leads to the slow development of circulation industry.Secondly, this paper constructs index system to measure the level of circulation industrial development in minority areas, based on the analyses of connotation, features and evolvement mechanism of circulation industry in ethnic areas. The indicator system consists of three criteria layers:industry size, industry efficiency and effectiveness and industry type. Under these three upper layers are seven thematic layers such as input level, output level, industrial efficiency, value creation, social contribution, organization degree and modernization degree, a total of29indicators. Through Group Decision AHP method and factor analysis method, this paper determines the index weight and makes empirical analysis on the development level of circulation industry in Western Hunan ethnic regions by adopting2000-2010statistical data of eight counties or district (Yongding District, Cili County, Sangzhi County, Yongshun County, Baojing County, Yuanling County, Chenxi County, and Mayang county). The result shows Yongding District is far ahead of others in terms of the development level of circulation industry. Based on the result, the paper makes exhaustive comparative analysis on the development indexes of each district by employing the above-mentioned layers.In the next part, the seven indicators of social labor-division level, economic development level, circulation technique level, economic system, urbanization level are employed to comprehensively analyze the main factors influencing the circulation industrial development in China's ethnic regions. It shows that social labor-division level, economic development level, information technique level and knowledgeability level exert positive impact on the circulation industrial development, while economic system, tax policy of circulation industry and urbanization level bear no obvious relationship with it.Lastly, the paper brings forward five suggestions for the circulation industrial development in ethnic regions:(1) to take advantage of local resources to develop unique industry, and accelerate the process of opening-up and urbanization to promote the social division of labor.(2) to speed up the construction of transport infrastructure and the development of transaction technology, to ameliorate circulation facilities and improve circulation efficiency.(3) to promote the education and culture development and cultivate circulation talents.(4) to formulate and consummate policies and regulations and give priority to the development of circulation industry by putting into practice its supporting policies in ethnic regions.(5) to innovate the development pattern of circulation industry according to particularities in different regions.