Impact of Determinants on the Competitiveness of the Auto Industry: A UECM Model
影响我国汽车产业竞争力的因素分析:一个UECM模型

In this paper,we empirically assess the impact of internal and external factors on the auto industry.Here,we examine the impact of labor,capital labor ratio and openness on the output of the domestic auto industry using the unrestricted error correction model(UECM).Based on the bounds test we assess if the output of the auto industry is cointegrated with the above-mentioned determinants.The estimated short-run and long-run elasticities with respect to the determinants are reported.We found that whether long-run and short-run,labour has negative and significant effect on output,factor proportions have positive impact,openness has significant and positive effect only in the long-run.Strategies to enhance competitiveness in the auto industry are given in the paper.