The Empirical Analysis of Market Performance of Automobile Industry Market in China

Abstract

This text finds that the concentration ratio of automobile industry market in China overall takes on rising trend, which is based on the calculation of automobile industry market's concentration ratio in China between 2001 and 2008, the characteristics of market structure is similar to oligarch competition since 2008. According to industrial organization theory, people come up with the theoretical model of automobile industrial performance, including the variables of industry concentration ratio, profit ratio, research and development intensity, product differentiation, entry barriers and so on. Empirical evidence shows that the relation between profit ratio and the concentration ratio of automobile industry market is remarkably positive, while it is negatively related with research and development density and product differentiation. It also finds that the key point to improve profit ratio of China's automobile industry is enhancing central technical level.