The Effect Of FDI On The Market Structure Of Host Counteies

Since the reform and open of China, especially after entering"WTO", our country has made great achievement in using FDI. FDI entering China introduces powerful competition force, brings the new content and challenge for our market economy. As a developing country, China's market structure is undergoing rapid changes as FDI enters. By comparing and analyzing the change of China's automobile manufacturing industry market structure before and after the entry of FDI, this thesis tries to make a concrete analysis of the effects of FDI on economies of scale, concentration rate and entry barriers of China's automobile manufacturing industry. By the above analysis of the market structure, this paper put forward policy recommendations.This paper contains four chapters, other content can be divided into three parts: theoretical analysis, empirical analysis and conclusions of the study in addition to Introduction.In the first part, the theoretical analysis. Based on the general theory of market structure, it analyzes the effect of FDI on the market structure of host countries, explores the relationship between FDI and the market structure of host countries from the theoretical origin. Then it analyzes the mechanism of the effect of FDI on the market concentration rate of host countries by the Stackelberg model that introduced the variable of "super-national treatment".In the second part, the empirical research. According the change of China's automobile manufacturing industry market structure before and after the entry of FDI, it describes the evolution mode of market concentration of China's automobile industry by regression mode, explores the effect of FDI in the process of market structure changes and the impact of FDI on economies of scale , entry barriers of China's automobile manufacturing industry.In the third part, the conclusions. It concludes based on the theoretical and empirical research, puts forward the measures and recommendations in the aspects of competitive environment, industrial restructuring and brand building.