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China's Auto Industry Market Structure Study

Posted on:2005-11-11Degree:MasterType:Thesis
Country:ChinaCandidate:S S LinFull Text:PDF
GTID:2206360122480679Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
33The term of market structure refers to the relations among enterprises within one industry. The core issue of industry organization is the relation between monopoly and competition, and the market structure is the basic factor, which determines monopoly or competition. So the main core of market structure is to decide accurately the level of monopoly or competition, to harmonize the contradiction of competition and scales economy, to supply the foundation for sensible industrial policy.The motor industry is characteristic of strong correlation with other industries, marked scale economy, high entry barriers. In developed countries, largely oligopoly with high concentration is one characteristic of motor industry. Severe competition among the oligarchs, who own the main shares in the market, is the other characteristic. In the global tide, merger, monopoly, internationality, and global competition constitute the tendency of the world motor industry.Chinese motor industry has entered a stage of highly growth rate after 50 years' development. Since the 21st century, average annual auto output remains the increasing speed of 24.8%, the output has exceeded four million, and it has become the fifth pillar industry. This is a drastic advancement. However, compared with the foreign motor industry, there are still great disparities. Nine corporations control the world motor industry, while in one country, China, ten corporations control the motor industry, and so the concentration of the Chinese motor industry is low. From the whole motor industry in our country, the scale of the enterprises is small, according to the M-X curve; they can't enjoy the benefit of scale economy. There are too many enterprises in our motor industry, and the number of the enterprises of the motor manufacture has surpassed the total of the American, Japanese, German, English, French and Italian motor enterprises. And in 2003, even if the output of our motor industry has largely expanded, the total output only make up almost 1/3 of the GM(the largest motor manufacture in the world). At the same time, our motor industry has low special collaboration. Just based on one kind of the industry, we can make a conclusion that there's high differentiation, and the concentration of a certain kind of motor is obviously higher than that of the whole industry. So the motor industry in our country has particular characteristic: it's scattered from the whole motor industry, but just from the point of different kinds of motor, it has the structure of closed oligopoly or semi-oligopoly. The reason for such exceptional problem lies in the inadequate economic system reform and the imperfect market economy order. The author analyzes the above problems from three aspects: the market, the system and the organization policy. Firstly, from the market aspect, increasing demand leads to large investment, but low-standard repeated construction remains serious; the practical market hasn't established completely yet and the enterprises aren't the principal body of the market competition. Secondly, the right and responsibility of enterprises are obscure and in some degree the enterprises aren't the true body of the market competition. Thirdly, the middle market such as property right market is not developing well and social safeguard system is imperfect. During the transitional period, the new market economic system hasn't been established completely, the planning economic system still plays a role. So some double track system leads to the problem .At the same time, the partial and local interest accentuates the problem. In a word, the system and the profit are the direct reasons. For a long time, the central government keeps protecting the motor industry highly, and blocks the effective competition among enterprises. Under the protection of the local government, with consciousness of the achievement in their posts, the economic and financial diversions, the international of the budgeting restriction and the investment privilege transfer...
Keywords/Search Tags:the motor industry, market structure, effective competition, oligopoly
PDF Full Text Request
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