Estimation Of Industrial Concentration And Entry Barrier

Since the reform and opening, economic system gradually changed from planned economy to market economy, our country also gradually began to advocate and encourage competition in the market of our country instead of the situation of a serious lack of competitive culture of past, and, the degree of competition has become one of the hot topics of research. The level of competition and monopoly of an industry always relate to three factors-----the size of the enterprise, the number of enterprise, and the capacity of market----which can use the market concentration index to study, and relate to the entry barrier of an industry closely. Since the1950s, domestic and overseas scholars make a great deal of research in entry barrier theory and the application of market concentration.Based on the industry concentration measurement method and the entry barrier theory, this paper firstly calculates the concentration of industries in our country to obtain industries with higher concentration. Then analysis the entry barriers of these industries, and discusses the industry concentration and entry barrier in common and differences between china and the United States. We found that, in China there are nine industries that CR4is greater than50, the oil industry, banking, insurance, telecommunications, electric power industry, railway, water and air transportation and the postal service respectively; and these higher concentration industry have one thing in common----the industry administrative barriers is extremely high, especially the administrative examination and approval system. After make the data sorting of industry concentration in the United States, we found that industries with high concentration in the United States are also high concentration industry in china; and the entry barriers to the high concentrated industry are mainly economic entry barriers in the United States. So there are essential differences between our country and the America on the level of competition and monopoly with the similar representation.