The Influence Of Circulation Industry On The Manufacturing Upgrading In Zhejiang Province

Zhejiang province has a larget manufacturing and manufacturing owns a pivotal position in the process of economic development. In recent years, coupled with a buyer’s market and a rising labor costs, manufacturing development appeared in the process of excess production capacity, low profit margins, slow in technology upgrades slowly and a lot of other problems, which has become an enormous obstacles for sustained, stable and healthy development of zhejiang economy. Under the new situation, to explore the implementation manufacturing upgrade path is of great practical significance.Previous related studies research on the manufacturing industry upgrade pay more attention to technology innovation of manufacturing itself, but lack analysis from perspective in division of labor and related industry development influence, especially lack work on the influence of circulation.In fact, as an important link for the manufacturing value realization, circulation has function of material transportation and distribution.This paper combed the research literature on correlation of manufacture and circulation and study the present situation of manufacturing industry and the development of circulation industry in zhejiang province, considered the circulation efficiency and input and aim to explore the effects of circulation industry development on manufacturing upgrading.First, on the basis of industrial upgrading theory, labor division theory and industry, relevance theory, this paper analyzes the mechanism of the manufacturing industry upgrade and its implement path, then the suporting role of circulation in the process. This part develops from the two aspects. On the one hand, from the Angle of input and efficiency of circulation industry,the paper studys the role of circulation in the process of manufacturing upgrading. Because manufacturing lacks indepedent innovation ability, technology upgrades often depends on the value chain, then get technology spillover from linked manufacturers. The increase of circulation input to manufacturing promotes to deepen the division of labor of manufacturing and get more technology spillover by intermediates manufacturing trade, which is helpful to technological progress and product promptly. To improve the efficiency of circulation can help manufacturers get goods and imformation transported more faster, then improve the efficiency of capital flows, which is conducive to the development of innovative activities. On the other hand, based on the perspective of input and efficiency of circulation industry, the article also analyzed the influence of circulation on manufacturing. In the process of servitization transformation, manufacturing regard service output as the center of the production mode, the distance between consumer and manufacture is reduced continuously. From the enterprise level, shorten the circulation channels, transforme the original vertical supply chain model is the inevitable requirement for the transformation. In the circulation market of monopolistic competition, competitive procurement procedures to upgrade manufacturing more pressure, to help them improve flexibility of manufacturing production as an adaptive way in buyers’market.Secondly, this paper has carried on the related empirical studies by using input-output analysis and time series regression test, from two aspects: the circulation efficiency and input. First, calculate the the circulation industry value creating coefficient for manufacturing. Calculation results show that, with the increase of circulation intermediate inputs, manufacturing’s value-added rate is improved. What’s more, this effect is more pronounced in technology-intensive manufacturing. Second, introduces and analyses the modern inventory management system in garment industry, which illustrates the enterprise investment in circulation can promote the transformation of service from the clothing industry. Under the new management mode, supply chain for purchasing and selling share information together and improve the efficiency of commodity logistics, speed up the product update speed, reduces the manufacturer’s inventory costs. Third, using the time series data to verify the effect of circulation efficiency on manufacturing upgrading in zhejiang province. The empirical results show that there is a stable inertia link between the circulation efficiency and per tax per of manufacturing levels in the long term. In the production of technological progress, human capital accumulation, fixed assets investment, FDI scale, under the function of circulation efficiency optimization can significantly promote the upgrading of manufacturing, and the influence is modified by other producer services industry.Finally, according to the result of the above analysis, this paper gets the following results:circulation industry have a significant role in promoting manufacturing upgrading and transformation of service, increasing circulation middle input for manufacturing industry and improve circulation efficiency can promote manufacturing upgrading. Based on the above conclusions and considering the current situation of manufacturing and circulation industry in zhejiang province, this paper puts forward the corresponding policy recommendations:to further promote the manufacturing reform of manufacture and circulation; to promote the amalgamation and linkage of manufacture and circulation; improve service and professional development level of producer services.