Measurement of the Chinese Logistics Substitution Elasticity and the Influencing Factors –Base on the VES Model

Abstract

Use VES production function to estimate the substitution elasticity of Chinese logistics industry from 1978 to 2017, and the influencing factors were further analyzed. The results show that there are regional differences in the substitution elasticity in the logistics industry, and the substitution elasticity in the more developed eastern regions is higher than in the central and western regions. Through theoretical analysis and empirical test of the affection of logistics substitution elasticity, the conclusion shows that the capital deepening level, the capital return rate, the worker's higher education level, the market opening degree, the government consumption expenditure, the industrial structure factors will affect the factor substitution elasticity of the logistics industry. Therefore, the formulation of regional logistics industry policy should fully consider the influence of various factors, improve the flow efficiency of production factors within the scope of technology accessibility, and promote the coordinated development of regional logistics industry and other industries.