Prof. Xiao received Ph.D. from University of Toronto. He is an economist with research interest in the fields of empirical industrial organization, environmental economics and China economy. His recent work has focused on the Chinese automobile industry and explored such topics as the competition structure, the welfare effect of environmental policies and the vertical restraints of this industry. Before joining UTS Business School, Prof. Xiao taught at the Chinese University of Hong Kong, Fudan University and Shanghai University of Finance and Economics respectively. He was awarded the German DFG Fellowship in 2001 and Hong Kong RGC grant in 2016.
Empirical Industrial Organization, Environmental Economics, Health Economics, Marketing
Empirical Industrial Organization, Microeconomics, Econometrics
Xiao, J. & Ju, H. 2016, 'The determinants of dealership structure: Empirical analysis of the Chinese auto market', Journal of Comparative Economics, vol. 44, no. 4, pp. 961-981.View/Download from: Publisher's site
© 2016 Association for Comparative Economic Studies This paper investigates the factors that affect manufacturers' decisions to grant local monopoly to a dealer and the factors that determine the dealer's status of sole dealership in the Chinese automobile market. Our empirical findings suggest that manufacturer decisions depend on dealers' retail network: manufacturers are inclined to choose a sole dealer for their brands if that dealer also has retail outlets for substitute brands in the local market and to choose multiple dealers otherwise. These findings can be explained by the theory proposed by [Mathewson, G. F., Winter, R. A., 1994. Territorial restrictions in franchise contracts. Economic Inquiry 32 (2), 181–192.], who suggest that manufacturers transfer the exclusive right of resale from themselves to dealers only if dealers' contribution is crucial to the vertical relationship. When dealers also have extensive retail channels for other brands, their retail efforts and experience become crucial to brand success, and thus manufacturers are more likely to offer them sole resale rights. Moreover, our empirical findings suggest that manufacturers also consider product quality and market conditions when making their decisions.
The automobile market in China has seen unprecedented expansion during the past decade with rapid model turnover and dramatic price decline. This paper aims to document the evolution of price and investigate the sources of price decline, paying attention to both market structure and cost factors. We estimate a market equilibrium model with differentiated multiproduct oligopoly using marketlevel sales data in China together with information from household surveys. Our counterfactual simulations show that (qualityadjusted) vehicle prices have dropped by 33% from 2004 to 2009. The decrease in markup from intensified competition accounts for about one third of this change and the rest comes from cost reductions through learning by doing and other channels. In addition, our simulations show that the price decline would have been larger had it not been for the growth of household income during this period.
Hu, W.-.M., Xiao, J. & Zhou, X. 2014, 'Collusion or Competition? Interfirm Relationships in the Chinese Auto Industry', The Journal of Industrial Economics, vol. 62, no. 1, pp. 1-40.View/Download from: Publisher's site
Xiao, J. & Ju, H. 2014, 'Market Equilibrium and the Environmental Effects of Tax Adjustments in China's Automobile Industry', Review of Economics and Statistics, vol. 96, no. 2, pp. 306-317.View/Download from: Publisher's site
Wei, L. & Xiao, J. 2012, 'Factors affecting the take-off of innovative technologies: evidence from digital cameras', Applied Economics, vol. 44, no. 32, pp. 4143-4152.View/Download from: Publisher's site