Measurement Of China's Manufacturing Market Power Based On Roger Model

Since the reform and opening up,China's manufacturing industry has entered a period of rapid development.In the past few decades,significant results have been achieved both in scale and in total.However,there are still many problems behind the rapid development.For example,from the perspective of industrial development,most industries in China's manufacturing industry are still at the low end of the global industrial value chain,and they are still at the extremes of production and operation that rely on a large amount of raw material inputs.From the perspective of industrial organization,due to the late start of the market economy in China,there are a large number of unfair competition in China's manufacturing industry.Economic monopolies,industry administrative monopolies,and natural monopolies co-exist,and have not been effectively controlled for a long time.It has caused a lot of deadweight losses,worsened the market's fair competition environment,and unbalanced income distribution.It will certainly cause social equity problems in the long run.China's manufacturing industry is not only facing the problem of how to upgrade the industrial structure,but also the task of reducing monopoly levels and reducing social loss.The two forces behind these two problems are an invisible force.This force is market power.Market power not only reflects the level of market competition,but also relates to the level of market resource allocation efficiency.Therefore,it has always been the central topic of industrial organization research.However,because of the general assumptions of market power research methods,there are a lot of micro-level data.Domestic research on market power started late,and there are not many databases that can support research,and there is not much empirical literature on related market power.Therefore,based on the background of China's economic transformation,this paper takes the research of manufacturing market power as the starting point,and uses relatively mature market power measurement methods from abroad to try to use a large amount of micro-level data to measure the manufacturing market power,while using the method provided by Roger The market power of the manufacturing industry with double-digit code was measured,and then the Harberger method and Cowling and Mueller method were used to estimate the average level of social welfare loss caused by the manufacturing industry in China.Suggest.The market power premium level measurement results show that China's manufacturing industry as a whole has significant market power,and the market power premium level has a certain stability in the short term.The market power premium level is as high as 21%.There is positive market power in the industry.The overall range of market power is from 9.94% to 137.29%,and the fluctuation characteristics are obvious with the industry.The results of the research on social welfare losses show that the average annual net social welfare losses caused by China's manufacturing industry between 1999 and 2007 were between 14796 and 606.4 billion yuan,with an average annual level of approximately 374.3 billion yuan.Each year is caused by the market power premium level.The social welfare loss accounts for 2.92%-11.85% of the total sales revenue of the manufacturing industry,and the social welfare loss accounts for about 7.39% of the average sales revenue.