Abstract:

Using China's provincial panel data from 2001 to 2019, the spatial simultaneous equation model was used to investigate the endogenous relationship and spatial interaction between industrial homogeneity and circulation costs.This research found that as the level of regional industrial homogeneity increases, circulation costs show a U-shaped change trend, and circulation costs have a positive feedback effect on industrial homogeneity.In geographical space, industrial homogeneity has negative spatial spillovers and positive spatial interactions effect, the change of circulation cost is manifested in positive spatial overflow and negative spatial interaction characteristics.Through an analysis of cost reduction, efficiency enhancement, and inter-provincial spatial scale, three observations were made.First, the central government should focus on building regional economic integration channels and guide circulation activities to form a circular accumulation that is self-locking and has an agglomeration effect within the scope of desirability.Second, local governments should rationally plan the “hard” infrastructure of transportation and networks, but constantly improve the “soft” infrastructure of the market system.This will reduce institutional costs while guiding the development of the industrial structure to a rational and advanced level.Finally, circulation companies should simultaneously expand offline and online circulation channels, and rely on the Internet and technology to achieve cost reduction of traditional circulation channels that are a function of physical distance.

Key words: industry isomorphism, circulation cost, spatial spillover effect, spatial interaction effect, spatial simultaneous equation