China's Dairy Industry Market Structure, Efficiency And Performance Relationship Empirical Research

Market structure and market performance are the two most important topics in the theory of industrial organization. In the theory of industrial organization, the two most significant hypotheses are the Market Power Hypothesis of the Harvard School and the Efficient Structure Hypothesis of the Chicago School. Along with the developing of China's dairy industry, economists have put much emphasis on the research of the relationship between market structure and performance in dairy industry. This thesis will put the efficiency variable into the research of the relationship between market structure and performance, and conducts an empirical research on the two hypotheses in China's dairy industry.This thesis first reviews and summarizes the researches on the relationship of market structure and performance in both domestic and oversea. And the thesis also reviews and summarizes the researches on the relationship of market structure and performance in China's dairy industry at the same time. Then, This thesis calculates two main variables- market structure and efficiency, and analyses the relationship of market structure and performance in China's dairy industry. At last, it concludes the conclusion of the research, and puts forward corresponding advices on corporation and industry level.The basic conclusion of the thesis is as follow: (1) The market structure of China's dairy industry still belongs to low degree oligopoly market. The trend of the market concentration is growing deeper, but the competition is still fierce in the market; (2) the technical efficiency, pure technical efficiency and scale efficiency in China's dairy industry are on low side, and all of them are getting better; (3) The perfomance in China's dairy industry is mainly due to efficiency (X efficiency and scale efficiency), pure efficiency and scale efficiency are two important factors of the performance in China's dairy industry. Market structure (market concentration and market share-as a direct reflect of market power) is insignificant to the performance;(4) The growth of sales does not influence the enterprises' performance significantly;(5) Compared with other enterprises, foreign-owned enterprises are more profitable, and they are also more effective.The suggestions for corporations are: (1) Integrate the existing resource, optimize the scale of corporation; (2) Set up perfect talent mechanism, improve the operating efficiency of corporation; (3) Strengthen the communcation and cooperation with advanced enterprises in oversea; (4) Extend the market share via different ways. The advices for the government and the industry institution are as follow: (1) Program the industry resource reasonably, induct the enterprises changing their minds of development; (2) Spread advanced technology and improve the whole industry's producing technology.