Abstract:In the past, the way to developeconomy focused on agriculture or heavy industry. But now, as a part of tertiaryindustry, Logistics industry is one of the basic industries for economicdevelopment. Many researchers have proved theoretically or practically thatregional logistics and regional economy are positively correlated. They canpromote each other. So, improving regional logistics industry has become aninnovative way to promote economic competitiveness. This paper took the theoryabove as a base. According to the statistics yearbooks, the author extracted 10indexes to measure the conditions of logistics industry. After analyzing thedata through SPSS software, the levels of logistics industries in 20 citieswere compared and conclusions about the situation of logistics industry in Wuhan were obtained. Finally,this thesis gave some suggestions on how to develop the logistics industry of Wuhan Cityin order to promote regional economic competitiveness.

Key words: logistics industry, competitiveness, principal component analysis, suggestions

1Introduction

As one of the basic industries of nationaleconomy, logistics industry can make economy develop and promote economiccompetitiveness. Researches on relationship between regional logistics andregional economy have presented their positive interrelation. The earliestdocument about regional logistics and regional economy was the classicallocation theory which was represented by Weber’s industrial location theory,focusing on facility location and transportation cost differentials. Atpresent, international studies on regional logistics and regional economy havereferred to environmental protection, collaboration of all regional subjects,integration and utility of resources and so on. In 1980s, the discussion aboutregional logistics and regional economy started in China. National researchers allemphasized effects caused by regional logistics to economic development. ZhangWenjie (2002) analyzed the relationship between regional logistics and regionaleconomy with regional economy theory and transaction theory. He pointed outthat the development of national economy could promote the development ofregional logistics. Reversely, the improvement of regional logistics couldchange the growth pattern of regional economy, help forming newly risingindustries and regional markets circling cities, and optimize regionalindustrial structure. From the perspective of regional economic development andindustrial structure improvement, Hai Feng (2004) discussed impacts of regionallogistics on improving the efficiency of regional economy, upgrading thestructure of regional industry and shaping regional dominant industries. Bytaking Wuhanfor example, Liu Mingfei and Li Lan (2007) systematically analyzed theinteraction mechanism between regional logistics and regional economy, andresearched the interrelated extent between growing speed of logistical productand GDP through a mathematical model.

Referring to studies on methods forevaluating the competitiveness of regional logistics industry, Wang Bo and YangTianjian (2005) advised forming an assessing system including reasonable degreeof regional logistics, efficiency and service level of logistical branchingsystems and external environment. Yao Jianhua (2006) suggested that anevaluative system could be built by considering fundamental facilities, logisticalbases, the competitive potential and running efficiency of logistics industry.Shao Wanqing (2006) assessed logistics industry comprehensively from industrialscale, effects, structure, resources and potential, containing 17 classifiedindexes. Though researchers have done a lot of studies on how to evaluate thecompetitiveness of regional logistics and also got some achievements, choosingindexes is still influenced by lots of subjective factors.

This paper was based on the theory thatregional logistics and regional economy were positively interrelated and thedevelopment of regional logistics could promote the competitiveness of regionaleconomy. It discussed the competitive status and level of logistics industry inWuhan among thosenational node cities by principal component analysis. Then it gave some advicesto Wuhan fordeveloping regional logistics so as to promote the economic competitiveness. Wuhan is the economic growing pole of “8+1” city circle and Hubei province. The level of its logisticsindustry significantly affects the economic competitiveness of “8+1” city circle and Hubei province. How to improve the logisticsindustry of Wuhanin order to promote economic competitiveness should be highly stressed by the localgovernment. It’s also a subject deserving our research.