An Empirical Study of the Relationship between Scale and Efficiency on Auto Industry of China

In this paper, the scale and efficiency of China's auto industry relationships are analyzed through two dimensions of space and time. First, a group of comprehensive index system is established to reflect the current scale and efficiency of auto industry of Chinese provinces and cities, and the features of the spatial distribution about the scale and efficiency of China's auto industry are analyzed by hierarchical clustering method. Then we calculated the time distribution of two-dimensional indicators about scale and efficiency of China's auto industry by two indicators of the productivity of the overall labor from the year 2000 to 2006 and return on assets analysis, and found that there is an obvious staged representation of the size and efficiency in auto industry. Ladder-shaped features are found about China's auto industry development by the integrated dynamics on the two dimensions of scale and efficiency in space and time. Finally, through comparisons with advanced countries of the concentration degree in auto industry, we come to the conclusion that China's auto industry can obtain trade interests by its agglomeration advantages to enhance the status of the international division of labor in the auto industry.