Research On China Automobile Industry’s International Competitiveness And Its Influential Factors

China has been the reelected superpower of world’s largest automobile in production and sales for two consecutive years, yet the pace of automotive export has always been out of touch with that, there is a serious imbalance between the industry’s international competitiveness and the production and sales scale, and the international competitiveness is far behind other countries. This paper consults the relevant literature on automotive industry’s international competitiveness and finds that domestic study on this field is mostly carried out around the Competitive Advantage of Nations, which is fixed in modes and lack of a clear hierarchy evaluation system, and literatures which empirically investigate internal and external industry factors in a unified framework are relatively less. Thus systematically study the influential factors of automobile industry’s international competitiveness from these aspects is particularly necessary.This paper starts with the hierarchical evaluation system for the industrial international competitiveness, elaborates on the export trade performance of China’s automobile industry, then comprehensively evaluates its industry environment, corporate structure and market performance indices, and carries out empirical investigation on typical internal and external industry indices based on facors contribution. Research on the subject can be divided into three parts, the first part is based on study of related literatures, systematically study the connotations and theoretical basis of the industrial international competitiveness, determine the evaluation system and the hierarchy of the automotive industry’s international competitiveness, this is the main framework of the normative analysis of this article. The second part starts from the above theoretical framework, summarizes the market size and structure of china’s automobile exports, and then quantifies the secondary indices under environment competitiveness, enterprise competitiveness and market competitiveness. The results show that, the internal and external industry indices each have their own development characteristics and different countries emerge different variation tendency in the different competitive indices. The tertiary part selects economies of scale, industry concentration, labor productivity, foreign direct investment, R&D capabilities as explanatory variables, intercept the industry sample data between the year1989-2010, Statically analyze the average impact of selected variables on competitiveness index by Co-integration test and Granger causality test, and further analyzes their dynamic relationship through Vector Auto Regression (VAR) model and impulse response function (IRF).Empirical results show that, in short term, response of automobile competitiveness to the shock of economies of scale is most drastic, while the stimulating effect of FDI and R&D capabilities on automobile competitiveness fail to meet expectation; In the long run, industry concentration is the most powerful and stable driving force to the automobile international competitiveness, R&D capabilities takes the second place, while the moderately positive and stable relation between FDI and automobile international competitiveness is complex; Most particularly, labor productivity has a negative influence on the automotive international competitiveness no matter in long term or short term, which means labor productivity level does not adapt to the requirement of the internationalization of the automobile industry. Based on the above analysis, we give the suggestions at the end of this paper from the industrial organization and enterprise management, the open policy and competitive environment, the upgrade of industry and government regulations.