Study On Industrial Concentration Of Auto Parts Industry In China

The pattern of "Structure-Conduct-Performance"(SCP) is the traditional way to study industrial organization, during which the relationship of structure and performance is a focus of attention. Industrial concentration is an important concept of market structure so it is very important to study industrial concentration and its main factors.Auto parts industry is the basis to develop auto industry. If there is not a powerful auto parts industry there will not be a strong auto industry. After entry into WTO Chinese companies have felt the press of global integration. But Chinese auto industry is still infantile, saying nothing of the auto parts industry. In the position of auto magnates' merge and acquisition Chinese auto companies will enter into the global purchasing inevitably. Chinese auto parts industry will face many strikes so how to survive in such environment is a very actual and stringent problem. But because the auto parts industry was not paid much attention to many research are focused on the auto industry. Studies of the auto parts usually are qualitative and the quantitative researches are few. Considering the importance of the auto parts industry and the lagging development to auto industry the development of auto parts industry should be attached more importance to.On the basis of industrial economics the paper analyzes the Chinese auto parts industry. Combining the world trend of auto parts development and the gap between Chinese and overseas auto parts, the industrial concentration and the relationship to the performance are studied with the yearbook statistic. The results show that: there exists a positive correlation between concentration and profit rate and the correlation is caused by the big companies' working efficiency and technical innovation. Secondly, the factors to the auto parts industrial concentration have been analyzed by the ways of regression and component analysis. Finally, from the results it forward corresponding suggestions for improve the industrial concentration: to complete and perfect the industrial policy and promote the development of parts companies. And the suggestion to the companies' development is also considered.