Measurement Of The Export Of Ceramic Products In China Market Forces

Market power is an ability to practice mark-ups over marginal cost in a certain time. This paper uses revised Hall Model to evaluate the potential market power of ceramics industry. We make a research on the discrepancy between potential market power and realistic market power facing by Chinese ceramics industry. Accordingly we give some suggestions to enhance the market power practiced by China's ceramics exports.Firstly, according to the analysis of China's ceramics exports situation, we find out that its realistic market power is weak.Secondly, in the evaluation part, we use price over marginal cost as an indicator of market power, and introduce export factor into Hall model and decompose the factors effecting market power as follows:the quantity of export,the quantity of output, the wages of the workers, the number of workers in this industry and the progress in technology. Considering the characteristic of Chinese ceramics market, we study it from two periods with Hall Model.Through empirical research, we found that the potential market power in these three industries is very prominent. Moreover, the sanitary ceramics industry has a trend of immiserizing growth. However, after China's entry into WTO, the market power of the three industries has been strengthened, the tendency of immiserizing growth in sanitary ceramics industry has been eased. But compared with the realistic market power, we found that the potential market power has not been fully turned into realistic market power. In other words, the realistic market power deviate the potential market power a lot.Thirdly, through analysis we found that foreign middleman, homogeneity of the commodity and excessive competition are the main reasons leading to this discrepancy.At the last, we propose some suggestions as follows:Implement differentiation strategy, and gaining competitive advantage; Strengthen homegrown innovation; execute internal resources for social integration, develop industrial clusters; carry out branding strategies, improve the profitability; enhance the government and industrious associations to establish a regulatory role of policies and improve the legal system.