An Empirical Study of Scope Economies in Chongqing Logistics

There is dramatically expanding in Chongqing logistics industry recent years. This article estimates the quadratic cost function with scope economies theories, and calculates "global scope economies" and "Product-specific economies of scope" to analyze the internal efficiency. The empirical findings show that from the 80% mean output level to 400% mean output level, GSE value first increases and then decreases, and there is max when it reaches 230% mean level. when the scale of chongqing logistics industry expands to 2.3 times, the velocity of increasing on scope economies reaches Maximum; if it continues to expand, the scope economies will still increase, but the velocity of increasing will be down.