XIE Lijuan,WANG Xiaodong：Influencing Factors of China's Circulation Cost——Empirical Analysis Based on Marx's Circulation Fee Structure

Abstract：The adverse effects caused by high circulation costs on Chinese economic development have been widely recognized. The focus of attention and policy, however, are mainly concentrated in logistics. This paper extends the vision to include commercial costs, which is based on the discussion of circulation costs in Marx Economics. The performance and influencing factors of both Productive Circulation Cost and Pure Circulation Cost are analyzed, and the effect of retailing & wholesaling activities on the whole distribution cost is emphasized. Using the provincial panel data from 2006 to 2012, empirical results showed that, in addition to the construction of infrastructure, the characteristic of circulation channel, such as degree of organization and structure, as well as retailers' profit model will have an impact on the circulation cost, and can perform differently in Productive Circulation Cost and Pure Distribution Cost. The policy implications are that more attention should be paid to optimize the business flow in reducing circulation costs, taking positive measures to improve its organization degree, rationalizing the channel structure, and strengthening the business functions of retail enterprises.

Key words： Circulation Costs    Retailing &    Wholesale    Influencing Factors    Marx Economics    Panel Data Model

source:Finance & Trade Economics ,No.12,2014