A Study On The Relationship Between The Industrial Concentration And Market Performance Of Manufacturing Industry In China

Manufacturing Industry is the one that with most high speed to develop the international competitiveness, the status in China economy of which would never be replaced by other industries, although facing severe challenges of globalization. To survive and step from Manufacturing Big Country into Manufacturing Powful Country, Manufacturing Industry of China must enhance its competitiveness furtherly. Thus, Manufacturing Industry, which is at the period of transition economy, is in desperate need of serching out feasible measures through the way of theoretical study so as to drive the optimization of its structure and organization and upgrade the competitiveness of the whole industry.According to the Theory of Industrial Organization, the Market Structure exert great influence on the Market Performance, amd the Industrial Concentration is a essencial index to measure the Market Structure. Based on summarizing the previous researchs and out from a fully new perspective of the the Industrial Concentration and the Market Performance, this thesis would carry out an empirical research on Chinese Manufacturing Industry, where data from 30 major industries and 88 small industries will be adopted and a methods integrating Measure Analysis with Quantitative Analysis,Comparative Analysis and Typical Analysis will be applied. This thesis would firslt start from hackling relevant theories and reviewing the current status of the study about the Industrial Concentration and the Market Performance, which would make a theoretical structure and fundation for following analysis of the relations between the above two. Then, this thesis would compute and analyze CR4 of different industries, making a conclusion that the Industrial Concentration is low, and would furtherly analyze the reason why the Industrial Concentration is low. This thesis would come to a conclusion that the Market Performance is low, after analyzing the Manufacturing Industry from three aspects of Market Performance is a kind of positive position, and so is to the relationship between the Industrial Concentration and Market Performance. However, the causality of them perform differently in different industries.Industrial Concentration would directly decide the Market Performance in some industry while mutual decisive influences exist between them in other industries. At last, this thesis would contrapuntally put forward countermeasures to solve the problems. The study of this thesis indicates that the rationalization structure of Chinese Manufacturing Industry should be a moderately concentrated market led by the dominant companies.The fundamental way out of upgrading the Market Performance of Chinese Manufacturing Industry is to realize the twin-engine effect of the Industrial Concentration upgrading and economic system transform.On one side, upgrading the Industrial Concentration through the way of advancing the resource opimization and integration,froming effective withdraw mechanisms, absorbing market competition of efficiency and pushing the upgrading of industrial structure.On the other side, pushing the System Reform by establishing unified markets,transforming management system,expanding capital market and standardizing Industry Reform regulations.