Research Based On SCP Paradigm:the Development Of Chinese Cotton Circulation Industry

Cotton is one of the most important materials that concerning the national wellbeing and people’s livelihoods. China is the largest cotton production, consumption,importing and textile exporting country in the world. As the intermediate links between cotton production and consumption, the cotton circulation industry also has significance to the development of cotton industrial chain. However, at present, most of the Chinese cotton circulation enterprise has problems that influence the industry’s performance level and sustainable development including business decentralization, low concentration ratio, low economies of scale, backward circulation technology, undue and improper competition, etc. How to solve these problems is a crucial issue that concerning to the development of cotton industry in the future.This paper combine the analysis framework of market structure- market conductmarket performance(the SCP paradigm) in the theory of industrial organization and several analysis methods used in the Industrial Economics, setting the status in quo of cotton industry as the starting point, putting the qualitative and the quantitative analysis together, analyzing the market structure, market conduct, and market performance. In the viewpoint of the Supply and Market Cooperatives(SMC) on cotton enterprises,putting forward to some policy-type proposal in order to enhance the cotton circulation industry’s performance.The main creative point of this paper includes three aspects:(1)Strengthening the theoretical system of the research of Cotton Circulation Industry and the research content of Industrial Economics;(2)In the analysis the point of cotton purchasing segment and cotton marketing segment, this paper take the specificity of buyer’s market and seller’s market into consideration, and modify the SCP paradigm;(3)Making a systematical research on the issue of cotton circulation system, which filling the gap of this issue..Through analyzing the market structure, market conduct, and market performanceof Chinese Cotton Circulation Industry, the conclusions obtained in this paper are: the Chinese cotton market exist severe phenomena including undue competition, product homogenization, and insignificant effect of scale economies. In the aspects of Market Structure, the concentration ratio of the Chinese cotton circulation firm is not significantly influence the market performance, but the difference level factor and the benefit of scale economies do. In the factors of marketing conduct, investing in the R&D field may significantly influence the market performance, although may not perform well in the current period, this effect may take effect in the subsequent period due to the accumulative effect.The M&A behavior could reduce the transaction cost,assuring the stable supplies of cotton product. According to these conclusions, this dissertation suggest that promote the segment of the cotton product through control every segment, cultivate the special cotton conduct, reinforce the technical innovation and transmission, continue to expand the business scale like merger and reorganization etc.