The Study On The Relationship Between Chinese Tobacco Industry And The Economic Performance

The tobacco industry in the world is concentrating more and more, driven by a higher profit of scale and in adverse environment. Now it becomes one of the most concentrated industry. But there are a lot of problems in Chinese tobacco industry, they are diseconomy of scale low degree of industry concentration, separate market structure which lead to low economic efficiency. With the threat of entering WTO, if the Chinese tobacco industry wants to survive global competition, it must improve its competitiveness. Under this background, Chinese tobacco industry which is in the middle of the transition process, is urgent to look for feasible method through theoretical research, so we can promote the optimization of the industry structure and industry organization, and improve the competitiveness of the whole industry.According to the theory of industry organization, market structure has an important impact on economic performance. The degree of industry concentration is the main index measuring market structure, so the thesis is from the new perspective of industry concentration degree and economic performance, with combination of the current situation of the tobacco industry, and study the relationship between industry concentration degree and economic performance of the tobacco industry using a positive method. At last, the author gets a conclusion that, industry concentration degree of Chinese tobacco industry has a positive pertinency with economic performance, the author also puts forward some suggestions which has a practical significance.The logic of the thesis is: based on the industry organization theory that market structure determines enterprise behavior, and enterprise behavior determines economic performance, the author sets out reviewing the theory of industry concentration degree, the theory of economic performance, and the current theory of the relationship between them. By this, the author make preparations for the analysis of the relationship between industry concentration degree and economic performanceof Chinese tobacco industry, then using scale of economy and industry barrier to analyze Chinese tobacco industry, we calculate the CR 4, HI and estimate the marketstructure of Chinese tobacco industry. Based on the analysis, the author draws the conclusion that Chinese tobacco industry is highly separated. By using actual data, the author calculates some important index such as: profit rate of sales, cost rate of profit, profit rate of asset and tax rate of asset, the author finds out that, the economic efficiency of Chinese tobacco industry is very low. The author confer that the low efficiency has something to do with the separate industry structure, so constructing a model with the independent variables of the factors which decide the industry concentration degree, with a dependent variable of economic performance, then have a regression analysis of the relationship between them, and get a conclusion that low industry concentration degree has a significant linear relationship with low economic performance. At last, according to the result of the regression, the author provide some suggestions to increase the industry concentration degree of Chinese tobacco industry.