The Impact of Industry Concentration on International Competitiveness in China's Auto Industry

摘要

The study explores the influence of industry competition on international competitiveness of China's automobile industry over 1992-2001. Industry competition is measured directly using CR4, CR8 and HII, and international competitiveness is equivalent to trade performance. We find robustic evidence that industry competition has a positive and significant relationship with trade competitiveness measured by net trade performance or quality index of export. Conversely, scattered industry decentralization reduces export performance. These findings support the view that high domestic industry concentration leads to international competitiveness, and justify the new auto development policies.