Some Research On The Path-Dependencr And Affecting Function Of Business Circulation's Modernization-Take Zhejiang Province As An Example

The business circulation industry mainly aimed to meet the needs of domestic producers and consumers occupies a pivotal position in the circulation industry. Since the reform and opening-up, Zhejiang Province has taken the lead role through promoting market-oriented reforms, the circulation realm not only changed the state-owned business to the various economic sectors, diversified investments and a variety of circulation formats, but also played the link role of production and consumption well. Especially with the emerging and development of the professional markets in Zhejiang Province, the connotation of the business circulation was enriched, also a large number of industries closely related to the professional markets such as textile industry in Shaoxing, small Commodity in Yiwu, hardware in Yongkang expanded to a large extend. All those make Zhejiang an unique market-driven model of industrialization. The role of the business circulation in national economy has further manifested and gradually become the pilot-based industries leading economic development.This paper first chooses 11 indicators to construct evaluation system of business circulation's modernization, the indicators' weight was constructed by experts AHP method. After evaluation, it shows that the standard of Zhejiang Province's business circulation modernization is relatively high, and the trend is increasing year by year. Especially since 2004, the increasing extend has become larger. There are many reasons leading to Zhejiang Province's high level of modernization such as natural, social, economic, and many other factors. From a historical point using path—dependency theory the situation is analyzed. Zhejiang Province containing few resources, the conflict between population and land, the commercial tradition in history, Ye Shi, Chen Liang as the representative of the eastern Zhejiang school of thought advocating the "worship of mercantilism" and the commodity economy's "system memory", all these factors above have created conditions for the development of the business circulation in Zhejiang Province, coupled with government policy guidance and other external factors, the evolution path has strengthened into a benign cycle track. The promoting effect of business circulation industry in Zhejiang Province is much larger than the pulling effect as if Zhejiang business circulation industry increases one additional unit, it will create GDP additional 23.1744 units through direct and indirect effects. Therefore, this industry in Zhejiang Province suits taking the initiative and prioritized mode of development. In the future, the industry can develop through different methods such as e-commerce, chain-store and the industry-commerce linkage mode based on professional markets. It can also link to the international markets so as to upgrade its intemalization. Finally, it uses structural equation model to analyze the affecting mechanism of circulation modernization in Zhejiang Province comprehensively. By LISREL software, a series of causal factors between three sub-system of the modernization and economic and social development are calculated.