The Impact Of Foreign Direct Investment And Technique Innovation On Concentration Degree Of China's Automobile Industy

Automobile manufacturing industry has great scale economy. High market concentration structure is one of the target modes of automobile industry development. However, the reality of our country is totally different in automobile industry. So it is urgent that promotes market concentration of automobile industry to develope the automobile industry of our country.Foreign direct investment (FDI) and technique innovation which have profound influence on market concentration have been two important factors in the development of automobile industry. Researching the effect of FDI and technique innovation on market concentration of automobile industry has great theoretical and practical significance for taking measures to promote market concentration of automobile industry.This dissertation analyzes the influence degree and direction of foreign direct investment and technique innovation to market concentration of automobile industry of our country respectively in the view of theories model and demonstration by microeconomics, econometrics, international direct investment theories, technique innovation theories, and so on. The demonstration analysis indicates that foreign direct investment has remarkably positive effect on market concentration of our country's automobile industry at present, while technique innovation has remarkably negative effect, and this result matches particular history stage.Considering the regression result, this dissertation draws some conclusions to promote market concentration: First, we should make use of more FDI and adjust the relevant strategies of FDI indraught. Second, we should change the technique innovation mode of automobile industry and improve the investment of technique innovation on the base of increasing FDI.