Studies Of The Spatial Structure Of The Consumer Service Industry Based On The New Economic Geography Angle

Since Thunen published his famous book which named “IsolatedCountries” in the1920s’, Location theory has been in a typical edge theorysubject position， and not only it studied economic relationship,but also itinvolved geography spatial relationships. Beforce the birth of new economicgeography theory, Location theory had not included into the mainstreameconomics research category.In1990’s,as some economists’contribution,for example,Krugman,Fujiti,Venables, PuGe,ect, new economic geography gradually formed. This theoryis called "new economic geography".compared with other location theory, thattheory has found a way to achieve general equilibrium.Because of that,it wasbringed into the mainstream economic theory.This theory skillfully use Dixit-Stiglitzmonopolistic competition model and Samuelson ’s “iceberg transportation cost”theory processing transportation cost method for spatial economic cluster analysis ofthe reasons of the breakthrough point, thus partly answered the question which is"why did the agglomeration appear?" As the agglomeration of industry, Marshallthinked the market scale expanding brought the scale effect among cast character inhisbook--"the economics principle ", labor market scale effect and informationexchange and technology diffusion led to the external economic effects, resulting inthe industrial cluster. But he did not reveal intrinsic mechanism of thesereasons, the new economic geography deeply penetrated into the internalreasons of the industrial spatial agglomeration, revealed its internal organizational mechanism.Based on the Dixit-Stiglitz monopolistic competition model,that theory’smodels inclue some particular model,for example, Core edge model, self-ownedcapital model, free entrepreneurs model, capital create model and so on.Thismodels all study about agriculture and manufacturing, hardly about services.Andnow in the development of national economy, services become more and moreimportant,even become mainstay of some country’s economy,so it is very importantto study service industry’s development.Compared with manufacturing’s spatial agglomeration,service industryalso has similar characteristics and similar intrinsic mechanism.Just becauseof the difficulties to use the tools of new economic geography theoreticalmodels, new economic geography theory model cannot find breakthrough inservices, so in the service industry of new economic geography study area it ishard to make progress.In this paper,it classifys service industry into four categorys,which areconsumer service industry, consumer service undertaking,productive serviceindustry and productive service undertaking. Compared to others, consumer serviceindustry’s characteristics are: it serve for consumers, secondly its main units are theenterprises which aimed for maximizing their benefit.The two features determine that the new economic geography theorymodel can be applied in consumer service industry: first, its service object isconsumer, thus can use Dixit-Stiglitz monopolistic competition model. Andproducer service industry’s service object are not consumers, it cannot use thetool that is consumer utility function.Secondly consumer service industry andconsumer service undertaking, compared with the main unit for profit for the purpose of an enterprise as a legal person, which can use the productionfunction analysis.Based on elaborating the applicability of the new economic geographymodel in consumer service industry,we began to establish the new economicgeography theory model in consumer service industry. And then improve it. Wethink that in reality consumer service industry’s distribution sometimes is notentirely core distribution condition or uniformly distributed, but multicore oruniform distribution.After establishing the theoretical model of the consumer serviceindustry,the paper analyzes the spatial structure of Fujian province’s consumerservice industry, and found the regional differences among the are large. Itpresent a three main core situation,which are fuzhou, xiamen, quanzhou. And,according to the analysis of the new economic geography theory model, spacefreedom is the deciding factor of the region economy trade space layout,space freedom was mainly includes three aspects, namely transportationconditions, the communication technology conditions and economicfreedom.the paper thinks that Fujian province’s space freedom is still in thelow level of level at present, low space freedom level limits the spaceeconomic development.Finally the paper gives some countermeasures and Suggestions for thedevelopment of Fujian province’s consumer service industry.In this paper the main conclusions are as follows:(1) the new economicgeography theory model in consumer service industry has applicability.(2)Consumer service industry’s spatial agglomeration is mainly determined byspace freedom.(3) Fujian province’s consumer service industry spacesituation is three-core Space situation at parent,which are Fuzhou, Xiamen, Quanzhou, and that is due to the differences of space freedom.