Volume 6, Issue 2, June 2020, Page: 13-16
The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price
Mao Yi, School of Economics and Management, Xi'an Shiyou University, Xi'an, China
Received: Jun. 17, 2020;       Accepted: Jun. 29, 2020;       Published: Jul. 17, 2020
DOI: 10.11648/j.ajtab.20200602.11      View  43      Downloads  21
In recent years, many scholars attributed the phenomenon of "price manipulation" and "mutually negotiated price" frequently reported in the media to the control of foreign companies in the industry. However, there are also some scholars who held the opposite view that none of the foreign-invested enterprises has raised prices of their products. To this end, this study analyzed the influence mechanism and effect of foreign capital entering to the changes of china's industrial sectors price using panel data of China's industrial sectors. The study found that: the entry of foreign capital influenced the change of China's industrial sectors price through raising labor productivity and weakening monopoly power. Research results indicate that, since China's reform and opening up, the entry of foreign capital promoted the raising of the Chinese industry sectors labor productivity, weakening monopoly power of some industry in China, reducing China's industrial sectors prices and curbing inflation on the whole, thereby it improved the level of the Chinese social welfare.
Foreign Capital’s Entry, Labor Productivity, Monopoly Power, Price Change
To cite this article
Mao Yi, The Influence Mechanism and Effect of Foreign Capital Entering to the Changes of China's Industrial Sectors Price, American Journal of Theoretical and Applied Business. Vol. 6, No. 2, 2020, pp. 13-16. doi: 10.11648/j.ajtab.20200602.11
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This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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