Foreign Direct Investment In China's Automobile Industry Market Concentration Effect Study

Taking transnational direct investment as subject way international monopoly capital some scale had entered our country with higher speed in the past, the automobile industry stands in the breach as the pillar industry of the economy of our country. This text uses the industrial organization theory to research to market concentration effect of the transnational direct investment with measuring the economic method. The main content of this text is as follows:(1)Based on the research of foreign direct investment and market concentration of host country, the analytical framework of the effect of foreign direct investment to market concentration of two connection industry of host country has been investigated in terms of competition and contacting among the related industries.(2)Market of automobile industry of our country is analyzed at first, and the analytical framework of FDI to the automobile market concentration of our country has been put forward. And the influence factor of the market concentration of automobile industry of our country is analyzed.(3)The demonstrations have been done on foreign direct investment and number of the enterprise of automobile industry, foreign direct investment and market concentration. The analytical frame of FDI to the automobile market concentration of the automobile industry of our country is verifiedBy the study of theory and demonstration, the paper gives some conclusions: First, number of the enterprise of the spare part and FDI are shouldered weakly relevantly. Market concentration degree effect of the spare part of FDI is through backward linkage of two connect industries. Second, FDI has promoted the market concentration degree of completed car industry of our country to no small extent. Total output of the automobile and employment of completed car industry also correlate with Market concentration degree of completed car industry.