Circulation Professionalization And Manufacturing Agglomeration

The impact of circulation professionalization on the spatial agglomeration of manufacturing is a academic and practical issue. Bilateral structure extends the meaning of industry association, entitles professional circulation vendors a new function. Traditional NEG theory, based on iceberg cost mechanism, emphasizes on behavioral decision of manufacturing firms, putting circulation firms into subordinate status. However, two-sided market theory provides academic possibility to circulation vendors for their actively influence on manufacturing agglomeration. The theoretical correlation between the level of the industry, combines with realistic external investment environment, such as institutional factors, technology and market factors, influence the spatial location decision of the manufacturers together. Our purpose is trying to revealing the circulation industry professional manufacturing location decision analysis framework from industry association between organizational perspective, through the fusion of bilateral market theory and new economic geography theory. And with the aid of the empirical analysis tool, we want to study our country circulation industry specialization between provincial level and the present condition of the manufacturing industry agglomeration of coupling.In the aspect of theoretical interpretation, this article impact on circulation industry specialization manufacturing agglomeration mechanism of carding and integration. Specifically, in the process of the interaction between industry to the association, the effect of the local market, the price index before and after effect and new economic geography elements such as path dependence can be seen as the bilateral market circulation and manufacturing firms in the description of behavioral decision. In terms of specific network organization structure, the specialization of circulation vendor functions similar to "the walrasian" auctioneer, by integrating information, manufacturers trading platform price structure for such adjustment, and at the same time of improve the efficiency of trading platform implementation platform utility maximization. As a platform, meanwhile, traders manufacturing vendors will respond with different location decision-making pricing adjustment of actual changes in the cost of circulation.Interaction can be changed but the industry manufacturing spatial distribution also need to consider the interference of external investment environment. Based on the fusion of bilateral between organizational structure and new economic geography, product model, on the basis of the external investment environment with the aid of the numerical simulation method in this paper, the existence of uncertain influence, circulation industry specialized functions for manufacturing agglomeration mechanism. Numerical simulation results show that the specialization of circulation manufacturers " non-neutral adjustment on platform price structure" function can affect the manufacturing location decision, depends on its professional level and the strength of the contrast between external investment environment influence.In the aspect of empirical study, we use provincial panel data from1997to2012, to test the numerical simulation results, in GMM terms, with the dynamic model. Measurement results revealed that at present China’s circulation industry specialization development in hysteresis has hindered the industry association between mechanism in the realization of the spatial economics. Imperfect face the interactive mechanism between industry and complicated external environment, more depend on the manufacturers in the manufacturing industry agglomeration form market expectations and regional system environment assessment of location decisions. Institutional change caused by the local adverse policy direction not only forced to a certain extent the development of the manufacturing industry in secure in the region, and further exacerbated the circulation channels innovation and the difficulty of the professional development as a whole.Circulation industry specialization, from the perspective of industrial organization, more performance in the circulation of the manufacturer as a flat Taiwan side in the process of trading, for both parties to the transaction costs of regulating ability and efficiency. The efficiency of the visual inspection result is embodied in the platform of the transaction amount, and both parties on the spatial location of change.In the process of realistic market transactions, information screening capacity difference and market the existence of the noise traders, forcing the upstream and downstream manufacturers by maintaining the traditional unilateral trade mode to avoid risk. However, the decision makers for circulation means the market function is restrained and professional process face stagnation. Our paper, on the basis of the comprehensive theoretical analysis and empirical results, points out, including institutional and market factors, the uncertainty of the investment environment has become a hinder the circulation industry ability the important factor of influence on manufacturing agglomeration. To promote inter-industry orderly operation of the market regulation mechanism, it is necessary to regulate and optimize external investment environment.