The Research On Industry Security In Mixed Oligopoly Market With Open Condition

Economic globalization has intensified the competition of global industry and put varieties of industries into the shock of international market. As a consequence, many countries have not only lost their own control of normal industrial chain and zoology which is needed in the process of economy progress, but also lost the control of important industries and core technology which is crucial to national economy and the people’s livelihood. Industrial security has become the essential problem of economy progression. In the essence, economic globalization is a worldwide global industrial adjustment which is led by developed countries and with international companies being its core. Deeply realizing present situation of industrial security in China and adopting measures in time in order to make the basis of building industrial security assurance system is the critical problem of China’s current economic development.The research of industry security has never come into an end since the initial period. Opening market is faced with a contradiction:one is that every country want to gain more benefits; the other is that governments worry about potential harm from international competition. The current research work is theoretically from the direction of controlling power of industry from government because of threatening from industry insecurity. When it comes to methods, the research starts from the objectives in microcosmic level, the transition from microcosmic enterprise to industry level is completed through level analysis, principle component analysis and DEA data envelopment analysis methods. However, the direct description about the industry security is lacked in the mathematical level. The overall analysis of industry security is very difficult for the market structure varies from monopoly to perfect competition. In this paper, the input of different elements of industry security in mixed oligopoly market has been researched. In addition, the impact from the input elements of choosing the best organizational form by government is also studied.In the research of industry security, the following work has been finished:Firstly, the research subject of industry security is identified as the state-owned enterprises, non-state-owned enterprises, and foreign invested enterprises in mixed oligopoly market. The essential subject of state-owned enterprises is government. Secondly the input elements that affect industry security in opening market is determined, that is, arrangement of property rights, the industry policy and opening category. The degree of mixed ownership, shares of State-owned enterprises and average tax rate on foreign firms are used to present three elements above. Thirdly, with the foundation of mature mixed oligopoly model, adding the utilities functions, making the industry security and performance as the constraints, considering the influence of elements on the industry security when the maximum utilities is reached. Fourthly, taking the example of petrochemical industry with low opening level and automobile industry with larger opening level, according to the result of model, analysis of industry security within the development of two industries. Lastly, With the result of conclusion of model and results of case study, the suggestion of policy for mixed oligopoly industry in the condition of opening is given.This thesis is organized in the following structure. In the first chapter, the research background, overview of literature and research methodology is presented. The theoretical principle is given in the second chapter. At the third chapter, the theoretical model of industry security in the mixed oligopoly market with opening up condition is provided. In the fourth chapter, the case study of automobile industries is completed. The policy advice and conclusion and prospects are presented in the fifth and sixth chapter respectively.