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Abstract This paper theoretically analyzes the mechanism of circulation industry on the efficiency of manufacturing, and then tests the hypotheses using provincial panel data of 2000—2011 and stochastic frontier approach. The results show that, specialized development of circulation industry does help promote manufacturing’s efficiency on the whole, and the function of modern circulation industry as producer services gradually appears. The firms’ scale is negatively related to the promoting effect, and encouraging commerce and trade outsourcing could enhance the effect. Improving policy environment and enhancing informatization level can improve the promoting effect of circulation industry on manufacturing.
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Received: 12 May 2014
Published: 15 August 2014
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Corresponding Authors:
LI Xiaohui
E-mail: leexiaohui@tom.com
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2014, Vol. 
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