The Research On Concentration Ratio Of Construction Industry Of Liaoning Province

Since the reform and opening up, with the strategy of rejuvenating the old northeastern industrial base of China was been formulated and Liaoning coastal economic belt up as the national strategy was approved by government, Liaoning province decide to make construction to become stronger. The construction industry of Liaoning province develops quickly, and made great contribution for Liaoning province’s economy, now it has gradually becoming the pillar industry of the Liaoning economy. However, the construction industrial structure is not reasonable. For example, the diverse economy has not been formed and conducts are simplex. The most important problem we face now is that how to adjust it. As an important index for measuring the industrial structure, the industrial concentration ratio is the research object of the paper, and then put forward some suggestions to optimize the industrial structure and improve the competitiveness of the construction.Firstly, based on the analysis of the research status of industrial concentration at home and abroad, the paper brings forward the industrial concentration ratio. The researches of construction market structure in Western countries are earlier and more complete, but because of its construction are being in a relatively perfect market economy system, so their problems of domestic construction industry were differenced with our country. In our country rarely use industrial organizational theory to research the construction, there are only some classical theory of literature which about the construction industry market structure’s research. In this paper, the theoretical analysis of the construction market concentration mainly determine the concentration index is based on the market structure classification and analysis of the impact of industrial concentration factors, including market capacity, economies of scale, barriers to entry, economic policy etc.. The expansion of the size of the market tends to reduce the degree of concentration of the market, when the size of the market shrink make the market competition intensifies, so as to some small enterprises were eliminated, thereby leading to the rise in market concentration; corporate behavior in the pursuit of economies of scale will inevitably lead to the concentration of production and changes in the number of firms, and thus have an impact on industrial concentration; barriers to entry include product differentiation, the necessary amount of capital and absolute costs, restrict and impede potential entrants to enter to influence the concentration; government can effectively promote economic policies market concentration and inhibition monopoly.Secondly, this paper summarizes some problems that exists in the enterprise size and business scope etc. through analyzing the market structure of construction industry of China and some developed countries, Liaoning and other Provinces in China. Moreover, according to the characteristic of construction industry and "valid competition classification method", the paper educes that the ideal market structure of construction industry is monopolistic competition. The monopolistic competition conducive to achieve economies of scale, encourage enterprises to carry out technological innovation, reduce costs, improve resource allocation rate of the industry, leading enterprises to become a real market suppliers, in order to effectively improve the industrial concentration.Thirdly, the paper estimates and analysis the absolute concentration and relative concentration of Liaoning province in the last ten years, it is concluded that Liaoning province industry concentration CRn rate is still low, also belong to " decentralized competitive", construction general contracting enterprise of the highest concentration, its market structure more reasonable and the competitive landscape is layered. and analyses some factors affecting in (such as the concentration ratio of last years. market capacity growth ratio. production capacity. enterprise entrance ratio etc) with the regression model. The conclusion is that the construction industrial concentration ratio is greatly related to the concentration ratio of last year and production capacity.In the end, in line with the analyzed result, the paper gives some suggestions from three aspects (the production capacity of enterprise, entrance barracks and the industry policy), so as to optimize the construction industrial structure and enhance the competition of the construction industry.