An Empirical Study Of The China’s Liquor Industry About Market Structure、Efficiency And Performance

The wine culture of china has a long history and penetrates into various fields ofsocial life. The liquor industry as the basic industry of our national economy is closelyrelated to the living of our country dweller. But the Chinas liquor market is also facingchallenges. On one hand, the inflation and recession double factors are making costsincreasing, and the price is rose in the high-level market and digested through themarket penetration and expansion of economies of scale in the low-level market; onthe other hand, with the development of international brands of liquor, the winefrom overseas grabs liquor market of the China successfully, and the total proportionaccounted for production sales and output of domestic liquor is falling year after year.Concerning the Chinas liquor industry, on the one hand, productivity increasesceaselessly; on the other hand, the industry is disorder, including the size of manyenterprises is small, and industry to enter the threshold is low, and the brand ismixed, and competition is more intense. Therefore, the integration of industrymarket order is the realistic necessity and complexity, and how to improve marketshare and competition of the Chinas liquor industry have important realistic andstrategic significance. The research of Liquor industry in China is just from the theory of industrialorganization, or individually to study the efficiency of the enterprises, and lack ofempirical research between the efficiency and performance of the liquor industry.For the liquor industry, if it exists the market structure hypothesis and the efficiencystructure hypothesis, which is not known. Blending view of the market structurehypothesis and the efficient structure hypothesis, in theory, the paper adds theefficiency variable into the market structure and performance relationship, andreveals the source of the performance of Chinas liquor industry. It can make atraditional market structure-market performance analysis method furtherdevelopment and study whether the liquor industry the existence of marketstructure hypothesis or efficient structure hypothesis, to provide a reference forfuture research.This paper mainly adopts the descriptive statistics method and non parametricmethod--Data Envelopment Analysis (DEA) to analysis the liquor industry marketstructure and efficiency, through establishing research model about the marketconcentration, efficiency and EVA performance and using the least squaresestimation method (OLS). Finally the paper comes to conclusion about the mainsource of liquor industrial performance by using Eviews5.0statistical software tocalculate the coefficient of model and its relevance.Research results show that, efficiency and market concentration are the mainfactors affecting performance of the Chinas liquor industry. From view of empiricalstudy about the market structure, efficiency and performance, if the paper uses themarket concentration degree to explain the performance of the liquor industry,between concentration and performance are negatively related; and if it adds the efficiency variable into the test model of the traditional market structure and theperformance, the result indicates that concentration, pure technical efficiency,overall efficiency and earlier total efficiency are positively related to performance ofthe liquor industry, and that market structure hypothesis and the efficiency structurehypothesis are found in our country liquor industry. Improving liquor industryoperation efficiency and industry concentration is the important way to improveindustrial performance, including market consolidation, business efficiency andbrand effect. The main innovation of this paper is that the domestic research on therelationship between market structure, efficiency and performance, mostlyconcentrated in the banking, insurance and other financial industries. Otherindustries are less similar studies, and the liquor industry is almost no similar studies.At the same time, the economic value added (EVA) is used to measure theperformance of the liquor industry, but the most previous studies used profit marginsindicator. So the EVA performance indicator is more practical significance.