Virtual Trade Circle Growth Base on Network Externalities:Theoretical Analysis and Empirical Test

Virtual business circle expansion has increasingly become the focus of scholars. We use the variable coefficient panel data model to measure the network externality basing on the analysis of the growth mechanism of virtual business circle. Results show that network externalities of different virtual business circle has significant differences,and this difference is mainly from nature,brand and product specialization degree the of the virtual business circle. Network externality of platform virtual business circle is stronger than the proprietary virtual business circle,and well- known virtual business circle and large integrated commercial.