IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Will the financial crisis become the turning point for China's auto industry? A dynamic computable general equilibrium analysis with imperfect competition

Listed author(s):
  • Hao Xiao
  • Shujin Zhu
  • Lafang Wang
Registered author(s):

    Following the substantial damage from the financial crisis in 2008, can China's auto industry successfully take up new challenges and grasp the opportunities ahead? First and foremost, this paper summarises the ways that the financial crisis has impacted upon China's economy. By analysing the impacts based on the MCHUGE model, the paper concludes that reductions in export demand and consumption expectations have limited impact on China's auto industry, while the comparative reduction in investment expectations has a great impact on China's auto industry. The paper builds the MCHUGE model with imperfect competition in order to assess whether China's auto industry, characterised as an oligopoly, could successfully accept such a challenge. The conclusion of this paper indicates that the damage to China's auto industry caused by the financial crisis would appear even more serious if the static effect of an oligopoly was the only consideration. Finally, by simulating the implementation of the Revitalisation Plans of the Automobile Industry, it is concluded that the revitalisation policy aims to boost auto consumption and will thus bring new opportunities for China's auto industry; on the other hand, the mergers and acquisitions between and among auto industries, as well as the relevant potential technology progress and the popularisation of new energy automobiles, will further promote the development of China's auto industry.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 7 (2009)
    Issue (Month): 4 ()
    Pages: 477-497

    in new window

    Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:477-497
    DOI: 10.1080/14765280903332249
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:477-497. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.