The Relationship between Merchandise Circulation and Industrial Promotion:Theoretical and Positive Analysis
Merchandise circulation and industrial upgrade are two concepts that have close connection.Merchandise circulation has the effect on industrial upgrade mainly is to adjust to the increase and the storage quantities of the public wealth.This paper sets up a model which is based on the theory of new Classical Economics,and analyzed the development of merchandise circulation that causes the enhancement of the transaction efficiency which promotes to industrial upgrade,and then the paper analyzed the effect of merchandise circulation on industrial promotion by utilizing the co-integration and error correction model.Empirical results show that there was a stable positive equilibrium relationship between merchandise circulation and industrial promotion in the long or short run.Through the Granger causality test,it was found that the development of merchandise circulation was the reason for industrial upgrade,and conversely,the conclusion wasn't true.