Market Structure,efficiency And Performance In China's Real Estate Industry

This paper is from the perspective of industrial economics, apply the market power hypothesis and the efficiency structure hypothesis to the real estate industry, and six enterprises with different qualification types in China's real estate industry between 2005 to 2009 are studied, empirical analysis the relationship between the market structure, efficiency and performance,and find the root cause of problems in the real estate industry.The paper first reviews and summarizes the theory of industrial economics and the researches on the relationship between structure and performance in different industries at home and abroad. Secondly, studies the market structure of China's real estate industry, finds that the market competition increases, and the market structure is in a low concentration. Then, DEA method is applied to estimate the efficiency of China's real estate industry. It shows that the efficiency of China's real estate industry is at a high level in general, but there are still some differences among enterprises with different qualification types. Finally, the paper builds a regression model based on the empirical analysis of the two above mentioned chapters. The result proves that efficiency has a significant positive correlation with performance, but the market power hypothesis and the efficiency structure hypothesis are not set up in China's real estate industry .Therefore, in order to keep China's real estate industry develop sustainably, it should through various means to improve business efficiency. On the one hand, government should plan the market resources integration from a macro perspective, and improve the various types of real estate policy actively; the other hand, companies should integrate the internal resources effectively, while focus on brand management and product innovation.