Research On The Impact Of Government Subsidies On The Vertical Integration And Performance Of New Energy Automobile Industry Chain

As a strategic emerging industry in China,the development of new energy automobile industry is of great significance to the construction of ecological civilization and economic transformation in China.At present,China has become the largest new energy vehicle market in the world,no matter in terms of sales volume,growth rate or global market share.The prosperity of the new energy vehicle industry is inseparable from the strong support of the government.Since the central finance subsidized the new energy vehicles industry in 2010,the total amount of various subsidies received by new energy vehicles is expected to exceed 200 billion yuan in less than ten years.Enterprises have accelerated the speed of vertical integration of the industrial chain in order to seize the policy benefits.Many enterprises have formed the whole industrial chain of new energy automobiles.In this context,this paper will study whether government subsidies have promoted the vertical integration of the new energy vehicle industry chain,and what kind of impact the vertical integration of the industry chain has had on enterprises.The research on this issue will help us understand the role of current subsidy policies better and its existing problems,so as to provide new ideas for government to formulate more reasonable industrial policies.This paper has a review of relevant theories and the existing research.This paper reviews the government subsidies of the new energy vehicles and the present condition of the industry chain vertical integration.Based on the existing theory inference,this paper summarized the effect of government subsidies on vertical integration,and put forward the relevant hypothesis.This paper selects 108 listed companies in the new energy automobile industry as the research object from 2011 to 2018.Firstly,the paper uses value-added method to calculate the degree of vertical integration of the company,and then constructs a panel model to make an empirical study on the relationship between them.Considering the heterogeneity among enterprises,this paper classifies enterprises according to size and R&D intensity and conducts empirical research by introducing interaction terms.Finally,this paper also studies the effect of vertical integration on enterprise performance.Based on the analysis,this paper draws the following conclusions:(1)The results show that government subsidies have significantly affect the degree of vertical integration of enterprises in the new energy vehicles industrial chain,that is,subsidies promote the vertical integration of enterprises in the new energy vehicle industrial chain.(2)The results show that the enterprises with smaller scale and more intensive R&D investment have more motivation to vertically integrate the industrial chain of new energy vehicles.(3)The results show that the performance of enterprises will decrease with the deepening degree of vertical integration.The strong financial support given by the government has enabled companies in the industry to integrate industrial chain in order to obtain subsidies.This behavior does not play a positive role in the enterprises’ performance.Instead,companies have suffered from "subsidy dependence".The layout of enterprises in the new energy vehicle business is mostly in accordance with the subsidy policy,which has led to the development of the industry dominated by subsidies,resulting in the situation that the development of new energy vehicles is large but not strong.The withdrawal of direct subsidies is necessary and inevitable,but relevant industrial policies need to continue.In the future,the government’s support for new energy vehicles should focus on technical research and terminal operations,and truly achieve the transition from "transfusion" to"blood generation".Only by this way,consumers’ independent demand for new energy vehicles can be fundamentally stimulated.