Industrial Organization Study On China Automotive Parts Industry

The logical system of the dissertation is based on the theory of industrial organizational of industrial economics. The dissertation focuses on the analysis of the market structure, market conduct, market performance, industrial organizational policy and economics of scale, and puts forward the advice of improvement.Industrial organizational theory is a quite large theoretical system within which there is the earlier famous economist named Marshall who put forward the concept of organization. After that there are schools like Harvard industrial organizational system, Chicago industrial organizational system and new industrial organizational theory such as competing market theory.For the division of domestic auto parts market, there are many problems such as the excessive enterprise, invest repeatedly which make the limited capital cannot be utilized sufficiently. So the character of the market is serious waste, low efficiency of resource configuration and low economics of scale. In this paper we analysis the concentration of auto parts market, the difference of product and barriers of entrance and exit, summarize the conduct of competition and harmonization, calculate the performance of market in order to point out the actuality and deficiency of auto parts industrial organization.After the China's WTO entry, the auto parts industry strides forward a material step on the trade freedom and investment freedom. There is no limit on the ratio of stock and the rule of local content rate. The tariff declined to the rate of 10% on July1st 2006. In the June of 2004, the auto industry policy was released. In this paper, we analysis the automotive policy from the theory of industry organization policy, put forward the industrial organizational policy based on the efficiency competition, which is the solution of how to improve the development of automotive industry.One of the reason of low economics of scale is the effect of environment, the other is the scarcity of understand in the charge section of automotive parts. In this paper, we evaluate the scale economic benefit by the model of DEA, put forward the proposition of how to improve the scale economic benefit.In a word, we research on the automotive parts deeply and intensively by theway of combination of demonstration and normal, quantitative analysis and qualitative analysis as well as the contrast. There are three innovations: Firstly, construct the automotive parts industrial organizational system. It starts from the actuality of china automotive parts industrial development, by constructing the market structure, market conduct, market performance and evaluating the economic scale to put forward the prospect and finish the design of China automotive parts industrial organization. Secondly, we make the conclusion by the frame of SCP and define the economic scale, concentration of auto parts market, the difference of product and barriers of entrance and exit. Thirdly, we evaluate the economic of scale by the model of DEA on the program of MATLAB and propose the countermeasure for China automotive part industrial organization.