Abstract:District logistics and district economy is an interrelated entirety. District logistics provides a good entity reference for district economy. It provides a new way of integrating and arranging district logistics system through integrating district logistics system and System Dynamics.Through the research on Jiangsu province logistics development, logistics cost factor is the key constrain of regional economic development. Improve the usage of logistics facilities can optimize the situation.

Key word: District logistics; district economy; System Dynamics

1 District logistics

1.1 Connotation of district logistics

  District logistics belongs to macroscopical logistics category. In certain district circumstance, all kinds of goods in and out of the district flow to receptors from the suppliers based on the scale and scope of the district economy, which services the development of the district economy and enhances the level and efficiency of district logistics activities.[1]It emphasizes the course of delivering and distributing goods from the suppliers to the receptors among towns, cities and companies in the cities and boom districts. It is the point that is to solve various logistics problems in a big scope through logistics concepts and strategies so that relevant mechanism may work for optimizing the district logistics system.[2]

1.2 Content of district logistics

  1. Angle of district competence. There is a mutual-stimulating relationship between modern logistics and district competence. There are three aspects in district competence: basic competence, core competence and dominant competence. Modern logistics may accelerate basic competence: the development of modern logistics helps to enhance district labor stuff and capital investment efficiency and increase capital investment volume to enhance the capacity of pulling resources into the district from outside and taking advantage of resources in the district, greatly improving and consummating the basic establishment in the district. Modern logistics may accelerate core competence through upgrading district industry structure and pushing form of economy increase to aggregated pattern; Modern logistics accelerates dominant competence through developing modern logistics, enhancing functions of controlling and distribution in the district, also the cooperative relationship between other districts, which can enhance dominant competence in the district.