An empirical study on concentration ratio of Chinese patent medicine industry in China and its influencing factors / 中草药

ABSTRACT

This review is used to improve the concentration ratio and competitiveness of Chinese patent medicine industry, and to provide reference for policy-making. The concentration ratio of Chinese patent medicine industry was calculated by CRn. The multiple regression model was conducted to analyze the Chinese patent medicine industry’s concentration factors influencing. Product differentiation, scale economy, and foreign capital economy proportion have a great impact on the concentration of Chinese patent medicine industry. The enhancement of product differentiation and scale economy can improve the concentration of Chinese patent medicine industry. The entry of foreign capital can also increase the concentration of Chinese patent medicine industry. However, related research shows that the entry of foreign capital will bring some security problems. Therefore, it is necessary to take some measures to prevent the potential risks brought by foreign corporations when improve the competitiveness of Chinese patent medicine industry and enhance Chinese enterprises’ strength by utilizing foreign capital.