The Measurement Of Market Forces And Scale Elasticity Of The Cement Industry In China Based On New Empirical Industrial Organization Methods

Cement industry is the most attention building materials industry. Pulling the sustained and rapid development of the national economy, the cement industry is developing rapidly, with the annual output of cement rapid growth year after year. Since1985, China’s cement production has been one of the highest in the world. By2010, the annual output reached1.88billion tons of cement. But in the process of rapid development, big but not strong, irrational structure, vicious competition, and other issues have been plaguing the industry. For the healthy and orderly development of China’s cement industry, since2006, the state has adopted a series of industrial policy, regulation and integration of the cement industry. Industrial policy to play its due effect must be in line with the industry’s own objective laws. Prior to the development of relevant industrial policies, the most critical issue is direct and effective determination of industry market forces and economies of scale, which is the theme of the thesis.The paper uses New Empirical Industrial Organization methods which are developed recent years. Necessary adjustments based on the actual data to the model of the cement industry in China, introduce a dynamic technical progress model structure, allow differences in productivity and economies of scale between enterprises, through cement listed companies between2004-2011panel data and GMM estimation method using two-way random effects model, directly estimated premium market forces and scale elasticity of the cement industry in China. Concluded through the metering:①At present, China’s cement industry, there is no systematic market forces. The formulation of industrial policy focused do not to prevent industrial monopoly, but to prevent excessive competition.②China’s cement industry, the characteristics of the economies of scale do not exist. The industrial regulation countermeasure is to increase the environmental review of efforts to eliminate the problem of external diseconomies, reduce energy consumption and environmental damage.