A Research On The Influence Of Market Concentration On Profit Rate Of China's Auto Industry

With the globalization process,the world competition pattern has been gradually opened,which makesChina's auto industry faced opportunities and challenges.Although recently China's auto industry is leap in productive,quality,various and completely,there is still a gap between China's automobile industry and the developed countries.In the study of industrial problems,industry concentration has been much concerned,especially low concentration of China's automobile industry.There is a certain degree of correlation between industrial concentration and profit margin.Therefore,this paper writes the subject that A Research on The Influence of Market Concentration on Profit Margin in China's Auto Industry in 2001-2016.Firstly,this paper introduces the background of my research,the industrial organization theory of the conceptand summarizes the literatures home and abroad of the Industrial Organization Theory,as well as relevant references to the profession concentration degree and ratio of income as a percentage of sales.Secondly,the paperintroduces the development of the concentration of China's auto industry,profitability analysis.Meanwhile,the paper contrasts and analysis the gap of China's auto industry concentration with the United States,Germany,Japan and other countries.Finally,this paper establishesa model of the impact of industry concentration and profit rate on China's auto industry,using statistical data from 2001 to 2016.Through empirical analysis it concluded that the concentration effect on profit margins have positive correlation.Then deep analysis of the factors affecting the concentration of the auto industry in our country has carried on and data analysis was performed using the EVIEWS statistical software.According to the regression results,some policy suggestions are put forward.