An Empirical Study on How FDI Impacts Market Performance in Domestic Commodity Circulation Industry

This article establishes the evaluation index system of China's commodity circulation industry market performance. Based on the data of 1995-2007, this study obtains the market performance factor of commodity circulation industry by factor analysis approach. Then, the article sets up the state space model between market concentration and FDI, and the multivariate regression model between market performance and market structure for empirical study on market performance of China's commodity circulation industry. It is found; overall, FDI increases concentration of China's commodity circulation industry, but the role of FDI for market performance is not obvious. The impact of market structure factors on market performance has a positive role, of which the concentration is the largest. Based on the above findings, this article puts forward corresponding proposals.