Research On The Relationship Between Automobile Chinese Industry Market Structure, Efficiency And Profitability

The automobile industry is the industry of a country’s soul, represents the overall level of development of national automobile industry. Automobile industry has long chain、high degree of association and drives strong, and it put great pulling effect on the economy of whole country and area. Since the nineteen eighties, especially since China entered the world trade organization, the automobile industry has hitherto unknown development. Due to the huge domestic market and the state industrial policy guidance, automotive industry profit rate kept a higher level in the several years. However, which factors influence the automobile industry profitability? Whether China’s auto industry supports to market power hypothesis or the efficiency structure hypothesis?This paper uses the data envelopment analysis to measure the efficiency of China’s automobile manufacturing listing Corporation, finds that China’s automobile manufacturing listing Corporation overall efficiency is not high, and grows slowly in recent years.At the same time, in the fifth part, the paper uses the econometric model to validate that which hypotheses fit to China’s automobile industry. The final results shows that the automobile industry in China support to the hypothesis of market force (market share and market concentration have significantly positive correlation to profitability), inclined to’the relative market power hypothesis’, not support the’efficiency structure’hypothesis. Finally, this paper proposes to speed up the development of China’s automobile industry policy recommendations.