Research On Modern Circulation Industry's Effect On The Economy Of Guangdong Province

Since 1978, owed to the policy superiority and the opportunity of international industry transfer, Guangdong exerted great efforts to develop manufacturing industry and became the global manufacturing base. And Guangdong has entered the medium-term industrialization. The industrialization process of other countries shows that, as production efficiency enhanced, the time product spent on circulation accounts for 90% in the supply chain at the medium-term industrialization. As a result, circulation industry would become more and more important for Guangdong economy.However, Guangdong Province doesn't realize the importance of circulation industry and still consider circulation industry as a subordinate industry. On the opposite, Beijing and Shanghai city have positioned circulation industry as supporting industry, and the two cities became the most developed area of circulation industry in our country.Based on the result of previous studies on circulation industry's effect on economy, this paper analyzed the factors that affect the economy development. According to the difference of function ways, this paper divided these factors into two levels: macroscopic level and industry relevance level. Then, this paper proposed the mechanism of circulation industry effect on economy. Based on the statistical yearbook and input-output table, this paper used empirical method to analyze the circulation industry's effect on Guangdong economy on macroscopic level and industry relevance level. According to the research above, this paper can get conclusions as below: the ability of circulation industry to increase employment is being strengthened; circulation industry is not the leading industry of Guangdong economy, but bottleneck industry. Finally, this paper proposed some suggestions for the development of Guangdong circulation industry.