An Analysis Of The Impact Of Enterprise's Entry And Exit On The Productivity Of China's Agricultural Machinery Industry

The demand of Agricultural production on the agricultural machinery has promoted the rapid development of China's agricultural industry,which had entryied into the history of the "golden decade" development period.When China has gradually become the world's largest agricultural machinery manufacturing and the largest agricultural consumer market in the process,the agricultural enterprises have shown a clear entry and exit trend,with the development of non-state-owned enterprises entry and state-owned enterprises to become the industry.However,China's agricultural machinery industry is facing a "small,scattered,chaos" state and industrial productivity is not high,the agricultural machinery industry is not strong.According to the theory of industrial organization,free to entry and exit is the key way to build an effective competitive market structure and to improve the overall productivity of the industry.The development and expansion of agricultural machinery industry is closely related to the breadth and depth of agricultural mechanization in our country.It is also related to the process of agricultural modernization in China.Analyze the influencing factors on enterprises enter and exit,the market structure and establish the framework of enterprises enter and exit with the agricultural machinery industry productivity is beneficial for building the competition order of agricultural machinery industry.Besides,it is good to provide policy recommendations for promote China's agricultural industry to improve productivity.Based on the perspective of enterprise entry and exit,the research mainly includes three aspects:Firstly,the trends and characteristics of agricultural machinery industry enterprises enter and exit,the same as influencing factors and market structure analysis.By determining the state of enterprises,the research aims to inform the overall situation of China's agricultural machinery industry enterprises enter and exit,and analyze theoretically the factors affecting the entry and exit.then analyze the market structure under the trend of entry and exit;secondly,the agricultural industry productivity is analyzed.Estimate labor productivity and the total factor productivity level under the Solow residual method,make a comparative analysis in productivity between entry,exit and survival enterprises;Thirdly,the relationship between enterprise entry and exit and agricultural productivity is analyzed.The dynamic effect of the entry,exit and survival enterprises on agricultural industry productivity is analyzed by dynamic OP decomposition method,verifying the effect of market selection,and the market competition effect model is established to analyze the indirect incentive effect of enterprise entry and exit.This paper makes use of the China industry business performance data from 1998 to 2013,the main conclusions are as follows:Firstly,under the stimulation of the profitability of the industry and the growth of the industrial market demand,and the lower entry and exit barriers,China's agricultural machinery industry enterprises entry and exit faces a dramatic replacement,average entry rate is higher than the average exit rate,the market structure characteristics is of decentralized competition Secondly,the productivity distribution among entry,exit and survival enterprises is obviously different.The productivity of enter and exit enterprises in most years is lower than the survival enterprises,but entry enterprise is not an alternative to inefficient enterprises,"survival of the fittest" competition mechanism is not perfect;Fourthly,the effect of agricultural enterprises enter the exit on the growth of productivity is not obvious,but the existence of market incentives is conducive to improving the agricultural machinery industry productivity.According to the conclusion,this paper puts forward three policy suggestions:First,standardize the entry of agricultural machinery market,improve the exit mechanism of agricultural machinery enterprises;second,encourage enterprises to introduce advanced technology and management experience and improve the level of productivity;third,to further improve the agricultural market competition system to ensure an open,fair market competition environment.