Studies On The Optimization Of China's Industrial Organization Structure In The Transition Process

Implementing the policy of reform and opening-up in the late 1970s is the symbol of China's entering the transition process from the planning economy to the socialism market economy. The transition of industrial organization structure (IOS) is one of the most important aspects in China's economic transition. Especially under the background of globalization and China's entry to WTO, optimization of China's IOS is one of the most important approaches to enhance the ability of international competition. This thesis regards the optimization of IOS and enhancing the ability of international competition as the main theme and constructs the theory frame of the optimization of China's IOS after reviewing generally and studying thoroughly the classic literature. The thesis researches the status quo and the evolvement track of China's IOS from three aspects, i.e., market structure, ownership structure and regional structure. Then, the thesis puts forward a U shape hypothesis of China's industry concentration and discusses the mechanism of the optimization of China's IOS from technological innovation, system transition and industrial agglomeration. Finally, the thesis illustrates the aim, principle, countermeasure and suggestions to optimize the structure of China's IO of competitive and monopoly industries as a logical prolongation of the former analysis.The basic frame to analyze problems and study phenomena of the traditional theory of IO is SCP paradigm. This thesis introduces institutional factor and special factor into the analysis of IOS with reference of the paradigm. So the thesis innovates upon the old frame to analyze IO. Market competition and government policy are the two basic powers to change the IOS. Exerting the function of market competition can promote industries to agglomerate and exerting the function of government policy can make enterprises bigger and stronger and promote market to congregate. At the same time, market competition also gestates the force to oppose competition and government policy could restrict monopoly and encourage workable competition. The thesis affirms the function of market competition and government policy and points out that technological innovation, system transition and industrial agglomeration are the important mechanisms to change the IOS in the process of China's transition either. The thesis combines the market structure, ownership structure and regional structure of IO with the three mechanisms and studies deeply the theoretical and practical problems of the optimization of China's IOS. China's competitive and monopoly industries have characteristics different from the western countries, so copying the policy of the western countries is unseemliness. In China's competitive industries, the market concentration is very low, decentralization and atomic-type market structure occupies the dominant status and the excessive competition is very serious. Most of China's monopoly industries were founded in the period ofplanning economy and had many characteristics of administrative monopoly. The inconsistency of high production cost, low service quality and weak competition ability is obvious characteristic of China's monopoly industries. In conclusion, the optimization of China's IOS must follow China's practice and reality, aim to enhance the competitive ability of industries, promote the agglomeration of competitive industries moderately, expedite the market reform of monopoly industries and achieve workable competition.According to the above-mentioned thoughts, the thesis is divided into five parts, eight chapters.The first part is chapter I. It is an instruction of this thesis. After studying the inconsequence phenomena of China's IOS in the transition process, the author put forward the basic issues and the theoretical and practical significance of the thesis, indicates the basic methods of research, designs the preliminary study frame as a whole, and educes the main conclusion of the thesis in the first part.The second part is chapter II. In this part, the author expatiates systemically on the evolvement and development of the theory of IOS and puts forward the theory frame of research on China's IOS and its optimization. Focusing on the subjects of IOS theory, the thesis studies and reviews the theory of classic industrial organization (CIO), traditional industrial organization (TIO), new industrial organization (NIO), non-mainstream industrial organization (NMIO ) and Marxist industrial organization (MIO). Then, the thesis puts forward three aspects of studying China's IOS which are market structure, ownership structure and regional structure and analyzes briefly the dynamic mechanism of China's IOS optimization in the transition process. The second part is not only a theory prepared for the positive analysis but also a general theory frame for the whole thesis.The third part is chapter HI. This part focuses on analyzing the market structure of China's IOS. The thesis puts forward a U shape hypothesis of China's industrial concentration and verifies the hypothesis theoretically and empirically according to the special background in which China is faced with the double transitions of economic system and form. The thesis persists that the relationship between industrial market structure and economic development process shows U shape in China's economic transition. The market concentration decreased obviously with the transition of economic system and economic development at the initial stage of reform and opening-up. Market concentration became more and more stably when the market system was evolved in the middle period of industrialization. After short fluctuation, market concentration appeared to increase slowly with the economic development. The U shape relationship between industrial market structure and economic development process is the result of market power, government intervening and the effect of other special factors in the transition process.The fourth part includes chapter IV, chapter V and chapter VI. This part is one of the most important contents of the thesis. In this part, the thesis analyzes systemically three optimization mechanisms of China's IOS and the ownership and regional structure of China's 10. Chapter IV studies the mechanism in which the technological innovationpromotes the dynamical change of IOS. Dynamical and mutual relationship exists between technological innovation and 10. Technological innovation can promote the concentration of 10 and different IOS affects technological innovation differently. One of the most important mechanisms in which the technological innovation promotes IOS optimization is to accelerate industrial convergence and break the boundary of 10. Chapter V studies the institutional facts of China's IOS optimization and analyzes with emphasis the influence which the transition of ownership structure of 10 can promote IOS optimization. From the late 1970s and the early 1980s, the ownership of China's 10 began to reform according to market-leading and multi-property-right. At present, the China's ownership structure in which public ownership hold the main status and manifold ownership coexist have come into being. The transition of ownership not only changes the ownership structure of 10 but also influences the market performance with other factors. By analyzing the industrial clusters, chapter VI studies the regional structure of China's 10 and discusses the mechanism in which the industry agglomerating promotes the optimization of IOS. Industry agglomerating and developing in the geographical space engenders industrial cluster. Industrial cluster is one kind of Quasi-market Organizations. It can optimize the IOS, improve the industrial competence and strengthen the regional economy.The fifth part is composed of chapter VII and chapter Vfll. In this part, the thesis analyzes respectively the status quo of China's IOS of competitive and monopoly industries and raises the aim, principle, countermeasure and suggestions to optimize China's IOS in the transition process. This part is a logical prolongation and summarization of the thesis. Chapter VII analyzes the optimization of China's competitive IOS. In this chapter, the thesis defines theoretically the workable competition and excessive competition, analyzes the status quo and cause of formation of excessive competition of China's competitive IOS and puts forward the suggestions and policies of optimizing IOS of competitive industry and achieving to workable competition. Chapter \1 analyzes the optimization of China's monopoly IOS. The primary characteristic of China's monopoly industries is administrative and the ultimate ways of optimizing IOS and improving competitive ability of monopoly industries are breaking monopoly, introducing competition and promoting market reformation. On the base of analyzing deeply the status quo of China's monopoly IOS, the thesis puts forward the objects, principles and basic thoughts and also the policies and suggestions of optimization of IOS according to the main contradictions and problems existing in monopoly industries.