The thesis puts forward a new framework of Distributed Economies (DE) based on summarizing the deficiencies in existing studies. This new framework is utilized to study the tourism evolution of Jiuzhai Valley, China. It is analyzed that tourism development in Jiuzhai Valley has the evolutionary sequence changing from small-scale service units run by the local residents to large-scale, centralized units. Factors, such as institutional arrangement, technology and knowledge limitations, can be seen as explanations for the misbehavors of small-scale businesses at the starting period of tourism. Government played an influential role in bringing about the evolution by direct regulatory policies. It is also concluded that the new framework of DE can deal with a wider range of real-world cases, e.g. tourism in China. In this sense, this new framework shed lights on the improvement of the theoretical framework of DE and the expansion of its study scope.