| With the further development of economy, big changes occur in China’s circulation domain. As a result, traditional specialized market is desperate to use IT means as new booster to fulfill its transformation and updating so as to meet the need of society. However, as public product, specialized market can only realize the great-leap-forward development with the help of government instead of relying solely on market. This article studies why and how local government functions during transformation and updating of Zhejiang specialized market, and this will makes some sense in promoting positive interactivity between government adjustment and market forces.Based on findings of specialized market, first, this article starts with Huzhou Zhili children’s wear market as an example, reviews its development, displays its accomplishments, therefore, puts emphasis on problems it faces as traditional specialized market. Second, on the basis of development tread in circulation domain at home and abroad, this article indicates direction for its development in the transformation and updating of Zhili children’s wear specialized market, applies public goods theory to analyses necessity and urgency for government to push forward the transformation and updating. Third, this article quotes "rational person" assumption in public choice theory to discuss functional absences of government. Last but not least, in connection with functional absences of government, this article reveals the function of government from policy guiding, business regulation to public service, and provides some advices for government on how to enhance development of specialized market. |
