The Study On The Relationship Between Market Structure And Demand Characteristics Of Industrial Manufacturing

Industrial economics research the role of industry and its system in the socio-economic development and resource allocation. Industrial Economics is not a long history of research, more formal study originated from Mason and Joe S. Bain. And domestic research in this area is after 90 years. Whether domestic and foreign economic research on the industry are still immature in many places, especially that of domestic industries have lagged, and have caused the lack of industry research and analysis system. "Harvard School" in the 20th century 50's set up the structure -conduct - performance is a classic post-industrial paradigm of the main forms of economic studies, in the future development of continuous improvement.Scherer in the "industrial market structure and economic performance" further improve the proposed role of the feedback, at the same time on the market structure of study new ways of thinking, behavior of the structure to emphasize the impact of the feedback. Followed by the development of the "new theory of industrial organization of experience" will be the introduction of game theory in industrial economics, so that the development of industry economics will improve with a more in-depth. The theoretical model of industrial economy involved by Scherer caused the establishment of this article, in which the market structure affects the supply and demand factors. In this paper, the theoretical framework: (1) Measure of market structure. (2) The choice of indicators and measurement of Demand characteristics. (3) Empirical analysis of relevance between Market structure and demand characteristics. Methods commonly used about Measure of market structure included CRn, H indexes. These methods to study the existence of the domestic industry's problem is lack of reliable corporate data link, and then consider the index of its own shortcomings, there is a need to measure the structure of the market to think of other ways. We hope that we can measure the market structure by use of industry data (such data more complete and accurate). And describe price elasticity of demand as a representative indicator for the characteristics of the demand in this paper. As for the measure of elasticity of demand, foreign demand function through Douglas for elasticity approach, but also through the Tran slog demand function for the elasticity approach, the analysis of long-term elasticity of demand is based on the assumption that the elasticity is constant. Such an outcome is usually not conducive to empirical research. In this paper we consider a solution: (1) This article useing the method from Appelbaum Analyzed the trend of market structure of China's manufacturing industry 16 years from 92-07 years, 21 samples of the manufacturing industry, analysis with a view to China's economic development, industry How to change the market structure characteristics. Industrial Economics in connection with the macroeconomics microeconomics has played a significant role. Macro-phenomenon of the past is little micro-economic theory as a foundation. The emergence of industrial economics is more micro-macro theory of the basis of the theory. Appelbaum method in a micro perspective, after the theory derived , establish theoretical models of empirical data in the industry based on, it solve our country's true micro-data to measure market structure problems from the micro to the macro. Through the empirical analysis, the theory expected have realized that expected the use of industry data on China's industrial manufacturing to accurately measure industry market structure. Empirical results show that the industry involved in the 95-99 years has a rise trend in the market structure of the process, and then become flat. The mainly reason is due to the emergence of economies of scale and economies of scope during this period. Including the use of high-volume production system, the expansion of production scale of enterprises, as well as in China's economic reform and opening up over a period of time after the viability of enterprises, the competitiveness and research capabilities have significantly increased, merger combined company to expand the scale of the trend of increase in enterprises in this regard can be seen a few changes. Number of industries and enterprises in China in 95-99 years there is a clear downward trend. It shows that the monopoly power of our industrial manufacturing industry in 95-99 years had been enhanced. (2) Demand characteristics refers to changes in demand curve with prices as reflected in the characteristics, which describes more products from the market point of view of this exchange process in the supply and demand, Price elasticity of demand is generally used to measure the degree of sensitivity of the changes in the demand response to price changes, can be regarded as the representation of the characteristics of market demand indicators portray. Price elasticity of demand on the demand curve as a measure of price changes can better reflect the needs of supply and demand characteristics of the process of change. As for the demand elasticity is estimated that half of this paper, several theoretical models, the application of panel data analysis, from the perspective of empirical measure of the inter-industry price elasticity of demand trends. Measure of price elasticity of demand found that the study of 92-07 years in the industry price elasticity of demand is constantly oscillating and there is a gradual downward trend. Measure of price elasticity of demand found that the study of 92-07 years in the industry price elasticity of demand under oscillation in slightly decreasing trend line. Measure of price elasticity of demand found that the study of 92-07 years in the industry price elasticity of demand under oscillation in slightly decreasing trend line. Price elasticity of demand declines in market demand with price sensitivity of the lower. (3) Through the analysis of market structure and the relationship between the elasticity of demand, analyze which market structure of industrial manufacturing industry is been decided by demand characteristics, those who have the technology industry market structure characteristics of the decision. Empirical results show that in this final analysis of the 20 industries, market structure of 12 industries have been affected by characteristics of demand, of which the relationship between the demand elasticity of tobacco industry and terrous metal smelting and rolling processing industry and the market structure was a negative correlation, That is, the lower the price elasticity of demand usually results in these two industries increased concentration, while that of the other 10 industry is a positive correlation, Price elasticity of demand reduction at the same time will reduce the concentration of these industries, including the textile industry, textile and garment, shoes, hat manufacturing, leather, fur, feathers and its products, wood processing and wood, bamboo, rattan, palm and grass products, furniture manufacturing, paper and paper products industry, culture and education, sporting goods manufacturing, pharmaceutical manufacturing, fabricated metal products, instruments and meters, and cultural and office machinery manufacturing. In this process, involving the handling of large amounts of data, including industrial value added,capital lease prices, capital stock (including fixed capital stock and capital stock), the number of labor and labor price index. Finally, in the empirical analysis of demand characteristics of the relationship between market structure and choice of model, this paper established a panel data model:Panel data model was chosen because (1) it can control over deviation caused by unpredictable variables to cross section data, the model estimates is more reasonable and accurate. (2) It has a larger sample space than time-series model, and reduce the economic variables were linear, it is estimated that more effective. Set model through the model test, test statistic is F, the final choice of the panel data model is the model with variable coefficients. The basic theory has been realized by Panel data model. We can effectively analyze industries market Structure, which is decided by their characteristics of demand, and others is decided by supply characteristics, in accordance with this result, we wish to lay the foundation for future in-depth study, and verify the expected theory that the characteristics of market demand have a significant impact on the structure of market.