The Interactive Development Of Regional Logistics And Regional Economy

Shanxi province is rich of coal,70%-80%of which needs to be shipped to the other provinces, and Shanxi’s economic development depends heavily on the development of Shanxi’s logistics industry. But because of the high cost of logistics and high ratio of no-load in transportation, the logistics industry in Shanxi restricts the further development of Shanxi economy. This is not the incidental case that the development of regional logistics did not coordinate with the regional economic development. China’s logistics costs accounted for18%of GDP, higher than Europe and other developed countries by6-8%, which indicates that China’s regional logistic development also lags behind the development of regional economy. Therefore, to make the two develop harmoniously, it is worth studying the interactive relation and the extent between regional logistics and regional ecomonic development.Based on the relevant theory in regional logistics and regional economy and the current research situation at home and abroad, this paper explores the interactive mechanism of regional logistics and regional economy. Taking Shanxi Province as an example, the interactive relation of regional logistics and regional economy during1993-2011were studied. First, Granger Causality Test is used to decide whether there is interactive relation between Shanxi regional logistics and regional economy; then simultaneous equation model is applied to analyse the interactive extent of Shanxi regional logistics and regional economy; finally a comparison is made to analyse the interactive development of regional logistics and regional economy between Shanxi and the other regions.The theoretical analysis and empirical results show that there exists significant interactive effects between regional logistics and regional economic development in our country now, but the interactive effects are asymmetrical. Regional logistics has a greater role in promoting regional economy, which shows the basic position of regional logistics in economic development; however, regional economy has a smaller role in driving regional logistics, which shows the high cost of logistics is a major constraint to regional logistics development in our country. Recommendations presented in this paper are:to promote regional logistics and regional economy to interactively develop, it is needed to increase logistics supply and reduce logistics costs; to improve the forecasting accuracy of regional logistics supply and economic development need; to improve the service quality of regional logistics practitioners.