A Research On Chinese Industry Organization Policies In Open Economy Environments

The reform for market economy from 1970's not only makes China have a higher economy growth rate but also changes the Chinese basic economy forms radically. China is changing to an open country with market economy from a closed country with planned economy. But it's no doubt that the governments including central government and local governments still play an important role in the economy development. Establishing and executing industry policies is one of the main measures to intervene the economy development for the governments. Industry organization policies are the main part of the industry policies.In order to analyze the current industry organization policies across-the-board and identify the challenges that the industry organization policies face in the open and market economy environments, I established a industry organization policies evaluation system combined with theory standards and practical standards on the basis of public choices theory, neo-constitution economics and industry organization theory.I evaluated the current industry organization policies theoretically by the evaluation system with the current constitution and economic environments in the background. On the base of the result, I put forward the following two main hypotheses: the first one is that the raise of concentration and scale mayn't result in the raise of economy efficiency in the industries protected by some industry organization policies, and the second one is the raise of concentration and scale from competition in other industries can result in the raise of economy efficiency. Then, I did a practical research on the hypotheses of theoretical analysis with the 500 industries statistical data in 2001. The result shows that there are remarkable negative correlation between the state variable and the efficiency variable and remarkable positive correlation between the foreign variable and the efficiency variable. At the same time, the concentration variables and scale variables from administration methods show no remarkable positive correlation with efficiency variable. All these outcomes confirm the hypotheses from theoretical analysis.The open industry organization policies on the basis of market economy and competition will improve industry markets' structures and raise the efficiency of the economy development.