An Empirical Study On The Concentration And ROA Of Chinese Manufacturing Industry

As results of promoting marketization, disadvantages of Chinese manufacturing industry have been exposed to the world: low-technology, low value-added, difficulties in industrial transformation. By now China is the second largest economics in the world, and manufacturing industry is still an significant part of the country, China needs to achieve industrial upgrade, improve technology contents, and increase product additional value for sake of its sustained economic development. By now most studies focus on relationship between performance and concentration of industry-wide or of sub-industries. The researches,which focused on the relationship between performance and sub-industry concentration, targeted on specific problems; researches which focused on the relationship between performance and industry-wide concentration had greater theoretical significance. As industries with different charactors can’t be studied by integration analysis, we screened all manufacturing industries and divided them to different groups. We used STATA to analyze panel data of different groups, and gave further explanation by SCP model. The conclusions are: 1) concentration of leading industries has positive relationship with their performances. 2) concentration of high-tech industries has negative relationship with their performances. 3) There is no significant correlation between the growth ratio of industry scale and the industry structure. Lastly, we gave advice on the improvement of industry structure and its performance.