IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v106y2017icp498-504.html
   My bibliography  Save this article

Dynamic analysis on market structure of China's coal industry

Author

Listed:
  • Yang, Qing
  • Zhang, Lei
  • Wang, Xin

Abstract

According to industrial organization theory, market structure is a crucial factor to market performance. Based on the VAR model and the data from 1994 to 2014, we revealed the dynamic response route of the market structure to these factors and the change process of contribution rate of these factors to the market structure. It shows that market structure is inertial adjustment; technology advance and industry policy have continuous effects on improvement of market concentration ratio; market size and production scale have sustained negative effects on market concentration ratio; fixed capital has barrier effect, which is mainly the entry barrier effect at the beginning, and then the exit barrier effect continues to play a leading role. Therefore, the government has no need to introduce special policies to encourage merger or expansion on the capacity as enterprises would do it spontaneously; it is necessary to make market access system stricter, to improve exit compensation mechanism and to promote technological innovation; all these policies need dynamic adjustment based on the stages of economic cycle.

Suggested Citation

  • Yang, Qing & Zhang, Lei & Wang, Xin, 2017. "Dynamic analysis on market structure of China's coal industry," Energy Policy, Elsevier, vol. 106(C), pages 498-504.
    • Handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:498-504
    DOI: 10.1016/j.enpol.2017.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517302264
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Porter, Michael E, 1974. "Consumer Behavior, Retailer Power and Market Performance in Consumer Goods Industries," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 419-436, November.
    2. Levy, David, 1985. "Specifying the Dynamics of Industry Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 34(1), pages 55-68, September.
    3. Krueger, Anne O & Tuncer, Baran, 1982. "An Empirical Test of the Infant Industry Argument," American Economic Review, American Economic Association, vol. 72(5), pages 1142-1152, December.
    4. Sawyer, Malcolm C, 1971. "Concentration in British Manufacturing Industry," Oxford Economic Papers, Oxford University Press, vol. 23(3), pages 352-383, November.
    5. Yoon, Seok, 2004. "A note on the market structure and performance in Korean manufacturing industries," Journal of Policy Modeling, Elsevier, vol. 26(6), pages 733-746, September.
    6. Mueller, Willard F & Hamm, Larry G, 1974. "Trends in Industrial Market Concentration, 1947 to 1970," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 511-520, November.
    7. Joaquin Maudos, 1998. "Market structure and performance in Spanish banking using a direct measure of efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 8(2), pages 191-200.
    8. Gratton, C & Kemp, J R, 1977. "Some New Evidence on Changes in U.K. Industrial Market Concentration, 1963-1968," Scottish Journal of Political Economy, Scottish Economic Society, vol. 24(2), pages 177-181, June.
    9. Pashigian, Peter, 1969. "The Effect of Market Size on Concentration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 291-314, October.
    10. Mita Bhattacharya, 2002. "Industrial concentration and competition in Malaysian manufacturing," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2127-2134.
    11. Jacquemin, Alexis & de Ghellinck, Elisabeth & Huveneers, Christian, 1980. "Concentration and Profitability in a Small Open Economy," Journal of Industrial Economics, Wiley Blackwell, vol. 29(2), pages 131-144, December.
    12. Guth, Louis A, 1971. "Advertising and Market Structure Revisited," Journal of Industrial Economics, Wiley Blackwell, vol. 19(2), pages 179-198, April.
    13. Libecap, Gary D., 1978. "Economic Variables and the Development of the Law: The Case of Western Mineral Rights," The Journal of Economic History, Cambridge University Press, vol. 38(2), pages 338-362, June.
    14. Peretto, Pietro F, 1996. "Sunk Costs, Market Structure, and Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 895-923, November.
    15. Gerard Go & David Kamerschen & Charles Delorme, 1999. "Market structure and price-cost margins in Philippine manufacturing industries," Applied Economics, Taylor & Francis Journals, vol. 31(7), pages 857-864.
    16. Blonigen, Bruce A. & Wilson, Wesley W., 2010. "Foreign subsidization and excess capacity," Journal of International Economics, Elsevier, vol. 80(2), pages 200-211, March.
    17. Ratnayake, Ravi, 1999. "Industry concentration and competition: New Zealand experience," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 1041-1057, October.
    18. Rhoades, Stephen A., 1982. "Welfare loss, redistribution effect, and restriction of output due to monopoly in banking," Journal of Monetary Economics, Elsevier, vol. 9(3), pages 375-387.
    19. repec:bla:econom:v:47:y:1980:i:185:p:19-34 is not listed on IDEAS
    20. Kambhampati, Uma S, 1998. "Market Structure Dynamics in Indian Industry," Bulletin of Economic Research, Wiley Blackwell, vol. 50(2), pages 133-153, April.
    21. Jenny, Frederic & Weber, Andre-Paul, 1978. "The Determinants of Concentration Trends in the French Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 26(3), pages 193-207, March.
    22. Chou, Tein-Chen, 1986. "Concentration, Profitability and Trade in a Simultaneous Equation Analysis: The Case of Taiwan," Journal of Industrial Economics, Wiley Blackwell, vol. 34(4), pages 429-443, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Qing & Zhang, Lei & Zhang, Jinsuo & Zou, Shaohui, 2021. "System simulation and policy optimization of China's coal production capacity deviation in terms of the economy, environment, and energy security," Resources Policy, Elsevier, vol. 74(C).
    2. Sun, Chuanwang & Ding, Dan & Fang, Xingming & Zhang, Huiming & Li, Jianglong, 2019. "How do fossil energy prices affect the stock prices of new energy companies? Evidence from Divisia energy price index in China's market," Energy, Elsevier, vol. 169(C), pages 637-645.
    3. Heerma van Voss, Bas & Rafaty, Ryan, 2022. "Sensitive intervention points in China's coal phaseout," Energy Policy, Elsevier, vol. 163(C).
    4. Chang, Kai & Ge, Fangping & Zhang, Chao & Wang, Weihong, 2018. "The dynamic linkage effect between energy and emissions allowances price for regional emissions trading scheme pilots in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 415-425.
    5. Hao, Xiaoli & Deng, Feng, 2019. "The marginal and double threshold effects of regional innovation on energy consumption structure: Evidence from resource-based regions in China," Energy Policy, Elsevier, vol. 131(C), pages 144-154.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mita Bhattacharya & Jong-Rong Chen, 2009. "Market dynamics and dichotomy: evidence from Taiwanese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2169-2179.
    2. Barbara M. Roberts, "undated". "Transition and Changes in Industrial Concentration in Poland," Discussion Papers in European Economics 98/4, Division of Economics, School of Business, University of Leicester.
    3. Maryanchyk Ivan, "undated". "Market Structure and Profitability in a Transition Economy: Ukrainian Case," EERC Working Paper Series 03-06e, EERC Research Network, Russia and CIS.
    4. Bhattacharya, Mita & Bloch, Harry, 2000. "The dynamics of industrial concentration in Australian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1181-1199, December.
    5. Pulak Mishra, 2018. "Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(3), pages 276-307, August.
    6. Song-Ken Hsu & Ming-Fang Tsai & Chih-Hai Yang, 2008. "Market structure, external exposure and industry profitability: evidence from taiwan," International Economic Journal, Taylor & Francis Journals, vol. 22(2), pages 201-214.
    7. Ozmucur, Suleyman, 2007. "Liberalization and concentration: Case of Turkey," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(5), pages 762-777, February.
    8. Asad Abbas & Muhammad Ramzan Sheikh, 2022. "Structure-Conduct-Performance (SCP) Paradigm: A VAR and VECM-based Granger Causality Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 125-136, December.
    9. Maman Setiawan & Grigorios Emvalomatis & Alfons Oude Lansink, 2013. "Structure, conduct, and performance: evidence from the Indonesian food and beverages industry," Empirical Economics, Springer, vol. 45(3), pages 1149-1165, December.
    10. Kevin Amess & Barbara Roberts, 2005. "The impact of foreign and state ownership on post-transition industrial concentration: the case of Polish manufacturing," Economic Change and Restructuring, Springer, vol. 38(3), pages 211-225, December.
    11. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.
    12. Rui Baptista & Murat Karaöz, 2011. "Turbulence in growing and declining industries," Small Business Economics, Springer, vol. 36(3), pages 249-270, April.
    13. Salman Haider & Aadil Ahmad Ganaie & Bandi Kamaiah, 2019. "Total Factor Productivity and Openness in Indian Economy: 1970–2011," Foreign Trade Review, , vol. 54(1), pages 46-57, February.
    14. Marta Aloi & Joanna Poyago-Theotoky & Frédéric Tournemaine, 2022. "The Geography of Knowledge and R&D-led Growth [Real effects ofacademic research: comment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1149-1190.
    15. Constanza Martínez Ventura, 2005. "Una revisión empírica sobre los determinantes del margen de intermediación en Colombia, 1989-2003," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 23(48), pages 118-183, Junio.
    16. Balassa, Bela, 1990. "Indicative planning in developing countries," Policy Research Working Paper Series 439, The World Bank.
    17. Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2022. "Industrial Policy and Competition," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 15, pages 349-380, World Scientific Publishing Co. Pte. Ltd..
    18. Kaneda, Mitsuhiro, 2003. "Policy designs in a dynamic model of infant industry protection," Journal of Development Economics, Elsevier, vol. 72(1), pages 91-115, October.
    19. Chu, Angus C. & Ji, Lei, 2016. "Monetary Policy And Endogenous Market Structure In A Schumpeterian Economy," Macroeconomic Dynamics, Cambridge University Press, vol. 20(5), pages 1127-1145, July.
    20. S. Luckraz, 2008. "Process Spillovers and Growth," Journal of Optimization Theory and Applications, Springer, vol. 139(2), pages 315-335, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:498-504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.