Abstract: The core of regional economic development is the optimization and upgrading of industrial structure and the optimal allocation of resources. Under the background that global economic structure needs to be optimized and element resources are less and less, how to allocate and guide the allocation of regional resources rationally, as well as how to optimize the direction of industrial development and determine industrial development strategies, including emerging industries, is a new issue each region faced. Firstly, under the background of economic globalization and zero marginal cost trends, regional industry development is no longer confined to regional internal resource endowments, resource mobility is strengthened, and regional industrial development options are more extensive and flexible. In addition, large changes of industrial production costs have taken place. Due to the fact that the increasing shortage of resource elements and economic development have accelerated the increase of labor costs and capital costs, the distribution of production factors in the industry will also need to be changed. Region have common characteristics as manufacturers. That is the biggest goal of the region is to maximize economic growth and the regional economic activities are also the process of effectively allocating various resource elements to form layout of different industries. The regional industrial structure is similar with product structure of manufacturers. Therefore, the design of regional industry development strategy and resource input is in line with the theory of manufacturers and is the result of the resource cost effect under the market economy. Based on vendor theory, using Cobb Douglass's production function, equal-cost curve, etc., taking the factors such as production costs and transaction cost into account, the regional industry boundary model and the industry's best factor allocation structure model are constructed. It creates an innovation research paradigm of the regional industrial upgrading strategy under the global trend of resource and commodity, provides theoretical guidance for the study of regional industrial upgrading strategies and resource allocation under the new normal economy, and supplies practical basis for industrial development strategies of the region, and the industrial pattern under the trend of zero marginal cost society has been initially explored. According to the study, the industrial boundary can reflect the long-term evolution of the regional industry, the industrial boundary is the optimal scale of industrial development under a complete market economy; the resource allocation pattern of a regional industry depends on the resource occupation and resource contribution of the industry, besides, the optimal allocation structure is affected by the relative contribution proportion and relative cost of each resource; The relationship between industry boundary and cost depends on if the industry is in the scale economy or not. Under the state of scale economy, industry boundary has a positive correlation with production costs and a negative correlation with transaction costs. With analysis of agricultural boundaries and the optimal allocation of agricultural elements, using the ten-year data from ten sample areas in the China Statistical Yearbook (2003-2012), the industrial boundary model and the industry's best factor allocation structure model were tested to be correct. At the same time, the limitations of agricultural development are found, and the best resource allocation scheme for agriculture are proposed, that is, to increase the investment in mechanical kinetic energy.

Key words: regional industrial boundary, factor allocation, vendor theory, agriculture