Study On Industrial Concentration Of Automobile Industry In China

In the framework of SCP (Structure-Conduct-Performance) of the traditional Industrial Organizational Theory, the market structure is mainly constituted by industrial concentration, which influences the market conduct, and thereby the market performance. In order to obtain the ideal market performance, it is feasible to resort to adjusting and improving the unreasonable market structure. Therefore, the critical factor of industrial concentration and its change has been all along the focus of industrial economics.This thesis will focus on the automobile industry in China. The automobile industry has been recognized internationally as one of the few industries which can promote the economy rapidly and represent a country's industrialized level. Moreover, it is the most prominent symbol of the modern industrial civilization which is characterized as being of great employment capacity and of potent industrial spill-over effects. The development of automobile industry is directly related to industrial structure, transportation structure, foreign trade structure, employment structure, and consummation structure of the national economy. Meanwhile, automobile industry is the typical industry which is of significant economics of scale and pre and post correlation. Oligopoly-type of intense concentration market structure is one of the target modes in China. It is evidenced by the developed countries'experience that the prospect of automobile industry is compacted orientation. However, the status quo of automobile industry in our country is too far from that target mode. That is to say, research on the critical factor of industrial concentration and its change is of great practical significance. Especially, confronting with the increasing fierce international competition, how to enhance its concentration level reasonably and promote its international competition becomes a matter of urgency.Qualitative analysis is employed, in this thesis, to analyze the status quo and the development as well as characteristics of the concentration level of automobile industry, the trend of automobile concentration level of countries with strong strength in automobile industry, and the concentration target mode of the automobile industry in China. Moreover, on the premise of analysis of automobile industry concentration in our country, influential factor is identified, and via yearbook statistical analysis, correlation analysis and linear regression analysis, variable and dependent variable of the numeral relationship in industrial concentration level are identified as well. Regression results indicate: the growth rate of market demand, the entering rate of producing enterprises and industrial concentration are loosely correlated; the concentration level at the beginning and the margin is insignificantly influence the industrial concentration; the factors affect the automobile industrial concentration in China are mainly the technological research and development capacity, economic scale and the involving polices, and among these, the technological research and development capacity influences industrial concentration negatively, economic scale and the involving polices influence industrial concentration positively. Therefore, according to the regression results, the methods of promoting automobile industrial concentration are proposed, which are to promote the technological research and development capacity, to enlarge economic scale, and to improve automobile industrial polices.