An Empirical Study on Technological Innovation, FDI and Market Performance of Circulation Industry

This article establishes the evaluation index system of market performance in circulation industry. Based on the data of 1995-2007 in China's circulation industry, this study obtains the market performance factor of circulation industry by means of factor analysis. Then, the article sets up model for empirical study, where the market performance is a dependent variable, and technological innovation, FDI, concentration and economies of scale are independent variables. It is found that technological innovation, FDI, concentration have a significant positive effect on improving market performance, of which the technological innovation is the largest, but economies of scale has negative correlation with market performance. Based on the above findings, this article puts forward corresponding proposals.