A Case Study about the Automotive Industry in China
Abstract: It is widely believed that the enter of multinational automakers and the ownership reforms of native enterprises promoted the development of China’s automotive industry in recent years, but no study has been conducted on it’s productivity. In this study, using micro-data on China’s automakers from 1999 to 2004, we tried to elucidate the characteristics of the development of China’s auto industry.
The problem is, did the productivity of China’s auto industry rise after the arrival of foreign makers and the ownership reforms, which took place in China’s native auto enterprises? In step with China’s rapid economic growth, domestic demand for automobiles increased explosively. In order to satisfy this demand, not only foreign makers but also native automakers promptly increased investment in the industry. If the automotive industry of China grows without improving productivity, development will be hard pressed to continue.
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