Research On The Promoting Role Of Informationization In The Development Of Circulation Industry

Circulation industry is one of the most important industries supporting the development ofChina’s national economy. However, circulation industry has always been regarded as thelabor-intensive sector. Subject to the impact of this concept and constraints, circulation industryhas a relatively slow technological innovation progress and low level of modernization. With theadvance of information technology, information systems including information processing system,communication system, network formation system, management information system, e-commercesystems will gradually cover all areas of social and economic life. Under this background, theapplications of information technology will promote the innovation and transformation ofindustrial development of circulation industry.Firstly, the transaction cost theory of institutional economics is used in this paper to analyzethe mechanism of IT promoting the development of circulation industry. It is concluded that byreducing market and internal transaction costs caused by the limited rationality, informationasymmetry and opportunistic, circulation industry can achieve the business expansion anddevelopment. Secondly, technological innovation theory is used to analyze the route of ITpromoting the circulation industry development. It is found out that by promoting the management,organizational and institutional innovation of circulation industry, information technology cancause a series of changes in the circulation industry and then to promote it’s development. Thirdly,according to the deformation of the Cobb-Douglas production function, time series analysis isused to analyze the relationship between China’s circulation industry development and IT. It isfound out that the development of is still relying on a lot of labor elements. Although IT hasplayed a promoting role in the development of circulation industry, it is still relatively small,which is mainly due to low level of information technology. Finally, some policies are put forwardto promote the role of IT in China’s circulation industry development: IT-leading and innovationstrategy should be established in circulation companies; development and application ofinformation technology should be strengthened in the circulation industry and IT talent should becultivated in circulation industry.