An Empirical Study of Concentration, Efficiency and Performance: The Test of Efficiency-Structure Hypothesis in Chinese Feed-Processing Industry

Based on market power hypothesis and efficiency- structure hypothesis of industrial organization theory, the concentration, efficiency and performance of Chinese feed- processing industry were analyzed in this study, and the correlations among them were revealed. With the data of Chinese feed-processing industry, the validities of these theoretical hypotheses were tested. It shows that modified efficiency- structure hypothesis is applicable to the feed-processing industry. Comprehensive technical efficiency has positive influence on the performance and concentration of feed-processing industry. The increase of industrial scale promotes market share and at the same time improves the industrial performance, indicating the presence of certain economies of scale in feed-processing industry.