Research On The Intensification Of China's Circulation Industry

For a long time,China's economic growth has driven mainly by investment and export,yet consumption makes a minor effect on it.One of the functions of circulation industry is the cohesion between production and consumption,which is an intermediate link in the economic system that plays a crucial role in the transformation and upgrading of industrial structure.Due to the large influence of the research fields and methods of mainstream western economics,domestic scholars seldom refer to the issue of the intensification of circulation industry.Owing to the deficiency that the research method lack standardization and systematicness,the domestic research production on the intensification of circulation industry are scarce and penurious.This article comprehensively investigates the intensification of circulation industry in China by mathematical deduction and empirical test,which provides preliminary and constructive theoretical framework that guide the reasonable development of circulation industry to promote transformation and upgrading of economic structure in China.In this paper,we use qualitative analysis and quantitative analysis to do a systematic study of the intensification of Chinese circulation industry.Firstly,based on general equilibrium theory,industrial organization theory and circulation theory,we construct the overlapping generation model based on general equilibrium analysis and the tripartite game model based on the bilateral market theory relating to the intensification of circulation industry.Secondly,based on the important influence of technological progress on the intensification of the circulation industry,we explain the important influence of technological progress on the intensification of circulation industry according to the results from the models.Thirdly,we use Malmquist index in data envelopment analysis and the formula of intensification degree to measure the level of the intensification of circulation industry in China,then make empirically test on it by the Dynamic Panel Data Generalized Moment Method.Finally,based on the above theoretical analysis and empirical analysis,we provide the feasible paths for promoting the intensification of circulation industry in China.Through comprehensive investigation,we obtained the following conclusions:Firstly,from the overall perspective,through the derivation of the generation overlap model of general equilibrium analysis,this paper found that the most important influencing factor improving the level of the intensification of circulation industry is total factor productivity,whose influencing factors also include labor and capital.From the perspective of circulation enterprises,through the derivation of the three-way game model based on bilateral market theory,this paper found that the level of the intensification of circulation industry reflect as the efficiency of circulation enterprises,which depends on the companies' concern toward the matching of goods and the technological progress.Secondly,through the systematic analysis of the innovation and reengineering of the circulation industry under the background of technological innovation,this paper found that,technological progress change the scope of markets in terms of trading venues,transaction time,product categories,transaction speed,and intermediate links.In the meantime,technological progress extend the functions of circulation from simple intermediary to integration services,driving innovation,guiding production,and stimulating consumption,thus promoting the advancement of circulation industry.Besides,the technological revolution can also change the trade pattern,logistics,payment,supply chain,and credit environment,resulting in reorganization of the circulation industry,and creating a series of new type circulation,which rely on new technologies and conform to new demand.Thirdly,by measuring the degree of the intensification of the circulation industry,we found that,during the inspection period,the level intensification of circulation industry in China maintained a strong growth trend.The regional differences are obvious,and the level of intensification in the central and western regions of China is higher than the eastern.Based on the system GMM dynamic panel analysis method,this paper makes an empirical study on the impact factors of China's circulation industry intensification at the national and regional level.The results show that the main influencing factors of the level intensification of circulation industry in China vary across different regions,which determine every region should adopt different ways to promote the level of intensification of circulation in various regions according to the local conditions.Finally,on the basis of the theoretical basis and realistic basis of the intensive development of the circulation industry,this paper summarized that the feasible paths for promoting the level of intensification of circulation industry in China mainly includes the integration of the supply chain,the optimization of the circulation organization,the innovation of circulation type.At the same time,it has a complete support system to promote the level of intensification of circulation industry on the industrial,corporate and technological stratums.The main contributions of this paper are as follows: First,we expand the research scope of intensification of circulation industry in both time and space through horizontal and vertical dimensions.Second,we integrate general equilibrium theory,circulation theory,and industrial organization to construct a theoretical framework for the research on intensification of circulation industry,providing some significant reference for this subject.Third,based on our theoretical framework,we realize the measurement and test of intensification of the circulation industry,which make the research more complete through the combination of positive analysis and normative analysis.Fourth,the results derivate from our theoretical framework prove that,the measurement toward the level of intensification of circulation industry is more accurately by the intensive degree.The empirical results show that the intensification level in the central and western regions in China is higher than in the eastern,which was inconsistent with the level of economic development in each region.The main reason for this phenomenon is the crowd in-out effect of labor and capital.