Research On Economies Of Scale Of China’s Gold Industry

Since the reform and opening up, China’s gold industry has achieved rapid development, formed the industrial chain including gold production, processing and distribution. The gold production of China is 450.05 tons in 2015, ranking the first gold production in the word nine consecutive years since 2007.But behind the rapid development there are still many problems, of which the most prominent is the scale of production of Chinese gold enterprises is small, and most enterprises in the state of diseconomies of scale.Firstly, we discuss the status of our gold industry from the mineral resources of gold, gold production, production costs, profits, firm size and industrial concentration and other macro-analysis. Then measured the scale efficiency of China’s gold enterprises using BC2 model, found that China’s gold enterprises scale efficiency is very low, mostly small-scale enterprises in the stage of decreasing returns to scale, and found that large-scale production enterprises have more scale advantages over smaller production scale enterprises. Subsequently using Malmquist index model for China’s gold enterprises scale efficiency dynamic analysis, studies show that China’s gold enterprises scale efficiency year by year growth trend, but the growth is slow. Finally, measures to enhance the efficiency of China’s gold enterprises scale to develop large gold enterprises, the integration of small and medium sized gold companies, mergers and acquisitions encourage large enterprises small enterprises to expand production scale enterprises; the development of mineral resources of gold body to regulate and reduce for a complete development of the main ore zone there are multiple phenomenon; science and technology to improve the level of the gold industry, not only to increase scientific and technological innovation capacity of enterprises of gold, should be combined with all forces, increase cooperation with research institutes and universities to accelerate the introduction of international advanced technology and talent; to encourage enterprises to actively develop gold international operations, expand the space for the allocation of resources, enhance the international competitiveness.