Study On Market Structure In Futures

With the development of the national economy and deepening of the economic system reform, especially of the financial system reform, futures industry sprang up in our country and developed rapidly. Because the Chinese futures industry has played a more and more important role in the development of capital market and market economy, it is necessary to study futures industry deeply and systematically. Meanwhile, it is advantageous to observe the current situation and expect the future. It is meaningful for government and administration to make related policies. However, lacking of theoretical basis and methodologies, the current research on Chinese futures industry has been at a low level.At the present time, it has formed a basic frame on large scale. It is necessary to study securities industry deeply and systematically since it has become an important industry in our market economy. However, lacking theoretical basis and research method, the research on our country's futures industry has been at a low level by now. In fact, the theory of industrial organization is a powerful tool for industry research. After many years' development, it has grown up and become one of the most important applied economics. This thesis applies theory of industrial organization to study respectively the market performance and market structure. In the mean time, this thesis analyses the relationship between market structure and performance in Chinese futures industry from both theoretical and empirical angels. This thesis uses the panel data of futures firms in China from 2002 to 2006 to study on industrial market structure and market performance. It draws a conclusion that, despite showing a trend of gradual concentration, but the Chinese futures industry is a highly competitive market structure, and the panel data regression results show that for Chinese futures industry, there was significant positive relationship between market concentration ratio and market performance. This thesis applied the translog cost function method to arrive at the scale of economy factor of Chinese during the period of 2002 to 2006, the exponential analysis indicated that Chinese futures on the whole enjoy scale of economy. It is consistent not only with Chinese futures industry is currently almost competitive market structure but also with the significant positive relationship between market concentration ratio and market performance.