The Market Power Analysis Of Liaoning Machinery And Electronic Products

Machinery and Electronic products has been the largest exported commodities of Liaoning, and been increased year after year. This article is different from the others about analysing export conditions and international competitive of electromechanical products, it analyses the probems of on the perspective of Market Power, the main method of this article is empirical measure of market power. the article measure the market power of Liaoning machinery and electronic products with an appropriately amended Hall model, it is base on bearing industry which is Liaoning typical electrical industry. According to the result, the article analysed the probem of the mechanical and electrical products base on the there sources of market power, and proposed appropriate policy recommendations.The article selects and uses a price-marginal cost index model. According to the export feature, the article divided the factor of the market power into several parts:the changes of the output, the changes of expot (changes in export volumes and price changes), the employment rate, domestic wage movements, technological progress, etc.Through empirical analysis, we found that the market power of liaoning electromechanical products is weak. The article research the reason of the loss of the market power by analysing the there resouces of the market power:export product homogeneity and high cut-throat competition among enterprises, foreign-funded enterprise with low entry barriers preemptive domestic markets and the economies of less vulnerable to the impact of technical trade measures. According to the theoretical derivation of the market power resouce implementations and empirical results, the article concluses that the innovation is the key of improving the market power of liaoning electromechanical product.At the end of the paper, it proposed several appropriate policy recommendations.