A Study On Vertical Structure And Governance Models Of Chinese Auto Industry

Auto industry plays an important role in the national economic systemand it is one of the key industries. The input and output table tells us thatmost industries are highly related with auto industries. So auto industriesdeserve more research.A lot of experts have already put forward mounts of research on autoindustries. However the existing research is mostly based on thehorizontal structure of auto industries. The vertical structure and itsrelationship is rarely touched.Actually the vertical structure is much more complicated than thehorizontal structure, meaning more research. And research on autoindustries neglecting the vertical structure does not make any sense. Thispaper focus on “the behavior of vertical integration” and tries to do some supplement work on the basis of the preceding works of otherresearchers.The paper retrospect the history of auto industry and its process ofrevolution in vertical relation, and tries to put forward a hypothesis thatvertical integrate phenomenon is positive related with the performance ofthe industry.Then this paper tries to measure the index of the vertical integrationbased on the I-O input and output method. The relationship among theindex and the performance will be analyzed.