Effect Of Policy Factors On Auto Industry Market Structure

After more than 30 years of effort, especially under the effort of national Strategic adjustment consumption policy support in the last decade, China’s auto market is rapidly expanding, and automobile production flourish. Car industry has long industry chain, high Correlation and more employment opportunities, play a big role in country economy and social development, as well determine the level of industrialization and represent the level of economic and technological development of a country. Industrial policy has an impact on the market structure of China’s auto industry.Based on domestic and foreign scholars on the SCP paradigm and market structure, the article describes the relationship between industrial policy and market structures from a theoretical point view. According to the degree of policy effect on market structure of China’s automobile industry, the evolution of the market structure is divided and Different industrial policies act on different market structure evolution. Do empirical Analysis with theoretical analysis. Choosing various indicators which can represent the degree of market concentration, as entry, exit and other factors, Analyze the effect of concentration on the market based on these selected indicators. Then get the conclusion that policy conclusions about market structure will have a positive impact. Finally, give recommendations of auto industry restructuring and industrial policy combine with the current economic situation and the implementation of the industrial policy experience.