The Influence on Development of the Third Party Logistics by Trade Cost

Abstract

Today, the development of the third party logistics is unbalanced between enterprises with different size, and between different industries in China. The third party logistics is the result of social division of labor, but the contradiction between division of labor and trade cost becomes the basic restriction of the involution of division of labor, which is against the development of the third logistics. Using principle of neoclassical economy, and based on analyzing the relationship between enterprise logistics price subsidy and trade cost, and on comparing the enterprise's utility under different trade structure, the inframarginal of enterprise Logistics outsourcing and the relationship between trade efficiency and enterprise's production utility had been studied to identify enterprise whether adopting Logistics outsourcing or doing it by itself. The result of this paper was helpful to enterprises to select different logistic modes and to drastically, and to government to establish industry policy.