Research On Structure Evolvement And Performance Of China Telecom Market

The development of China telecommunication industry is always along with telecom reforms. All of these reforms are marked with adjustments of market structure. The objective of structure adjustment is to improve economic efficiency, while many factors that can influence efficiency, such as market competition, economy of scale, productivity and technology innovation of enterprise, etc., are relevant with market structure directly and indirectly.Theory of Industry organization believed that there was a causal relation among structure, behavior, and performance. SCP paradigm of Harvard School believed that market structure decided market behavior, so that also decided market performance. However, Chicago School suggested that it should be a bidirectional causal relation among structure, behavior, and performance, rather than the one-way causal relation. Chicago School believed that market performance was decisive, and different enterprise made different market structure.SCP paradigm was built under market-oriented environment, but in Chinese telecom industry, regulation still plays an important role. So, it isn't appropriate to introduce Western theory directly to analyze reforms and performance in Chinese telecom market. This paper believes that changes of market structure are influenced by several factors, while performance of telecom industry can evaluate structure changes efficiently, which is the basic conception of this paper. Through analyzing structure changes in Chinese telecom market and reform achievements, this paper try to discuss...