The emulation analysis of production, circulation and dual structure model

The combination of Karl Mark´ circulation theory and dual economic model is adopted in order to solve the problem of industrial development limited by dual structure. The results are as follows: Insufficient supply of agricultural products and insufficient demand of industrial products coexist in dual structure. And it is crucial that the insufficient supply is solved first to stimulate dual economic growth and integrate the available resources. With constant technique, industrial economic growth in dual structure is mainly influenced by agricultural commodity rate and labor force movement into industry. The movement is accelerated by improvement of agricultural commodity rate. Consequently, it is investment in agricultural products circulation, including logistics and information flow, that is a significant way to increase the effective supply. Division of labor is introduced to circulation analysis, and circulation theory is used to develop dual economic model creatively. The results provide new insights into industrial economic growth in dual structure.