Study On Chinese Construction Industry Organization

In the past years, the construction industry has always been playing a great role in the national economy's development, especially after it is ranked as the pillar industry of the national economy. But its current laggard situation is undermining the very strategic position and weakening its competence in the international construction market. So, according to the traditional industrial organization theory, the dissertation firstly states the respective criteria of the pillar industry and leading one to clear up people's misunderstanding, then confirms its pillar position performed in the national economy in theory and practice. Followingly, it analyzes market structure, enteprises' conducts and market performance of Chinese construction industry. In structure, the concentration ratio, economy of scale, differentiation of product and barrier to entry and exit are discussed, which comes to a conclusion that the Chinese construction enterprises are being in excess-competition. Then the conducts of firms are investigated, which in conclusion is that the construction firms cannot supply their services to the market unless they bid with lowest prices or recur to kinds of abnormal means. But all these conducts seriously affect the industry's principle. The structure and the conduct result in low market performance according to the SCP paradigm. After compiling and calculating historical data, it comes to that the Chinese construction industry is being in a dangerous situation: 1) its resource's allocation efficiency is low which means the profit margin being low, the rate of product having no business with the industrial development and its production capacity surplus, 2) its technology improvement is slow, 3) for the above situation, the quality is not always eligible. Based on the above reality, the dissertation points out that our industrial organization policy should recognize effective competition as its aim and takes some corresponding measures as the efficient industrial organization policy of Japan, but not the balance one of the United States.