An Empirical Research On The Market Reform Performance In Chinese Civil Aviation Transportation Industry

Chinese civil aviation transportation industry has become an important part of the whole transportation system now. Civil aviation transportation industry plays a more and more important role in the macro economic operation with its obvious higher speed than GDP growth. But Chinese civil aviation transportation industry still belongs to the sunrise industry. Although the development speed of Chinese civil aviation transportation industry is faster, but it haven’t come into the stationary phase. There still is the very big development space and potential in the next few years. The growth of Chinese civil aviation transportation industry mainly comes from the expanded reproduction of the original system. Today, there is nearly ten years after the last reform. How about the current market structure, market behavior and market performance. What about the role of the reform to civil aviation transportation industry and civil aviation companies. What about the effect of market reform in civil aviation transportation industry. The answer to these questions is the key of the deepen reform in Chinese civil aviation transportation industry. From the practice aspect, the understanding and view of civil aviation transportation industry aroused wide concern of academics and policy aspect, along with gradually advance of market reform on the civil aviation transportation industry. The judgment of reform performance has become the key link of correct evaluation on the reform performance in civil aviation transportation industry. It relates directly to the path choice of the deepen reform. Whether market reform on civil aviation transportation industry achieved the expected effect, how about the degree of more or less the reform target, they are the problems this article focuses on. The answer of these questions has important practical significance to market performance evaluation and deepen reform in the civil aviation transportation industry.The paper is divided into eight parts. The research background, research significance, research status at home and abroad, research framework and research content, research methods, technical route and innovation points are pointed out in the first part. The second part introduces the concepts and theories involved. It includes four aspects:one is the overview of civil aviation transportation industry; the second is the regulation theory in natural monopoly industry; the third is the natural monopoly, competition and government regulation in civil aviation transportation industry; the fourth is market reform in civil aviation transportation industry. In the third part, on the base of reform process in civil aviation industry, civil aviation transportation market reform can be divided into the regulatory system reform, the competition introduction and the property reorganization. And then market structure and market behavior changes of civil aviation transportation industry have been studied. In the fourth part, according to the market reform goal of civil aviation transportation industry, reform performance evaluation system of the civil aviation transportation has been constructed on the basis of the design principles and design method of civil aviation transportation reform performance evaluation system. In the fifth part, I use Difference-in-differences Estimation to have an empirical research on market reform performance of ticket price in civil aviation transportation industry, according to the micro data of the civil aviation companies. In the sixth part, I use Difference-in-differences Estimation to have an empirical research on market reform performance of supply capacity, including total turnover volume, passenger turnover, goods load and flight mileage, in civil aviation transportation industry, according to the micro data of the civil aviation companies. In the seventh part, I use Difference-in-differences Estimation to have an empirical research on market reform performance of market performance, including allocation efficiency (rate of profit), technical progress efficiency (total factor productivity) and production efficiency (fuel consumption, passenger load factor and overall load factor), in civil aviation transportation industry, according to the micro data of the civil aviation companies. The eighth part is the research conclusion and prospect.In summary, we draw three conclusions, which also constitute the contributions of this paper.Firstly, the relevant conclusion of the analysis on market reform in civil aviation transportation industry. Civil aviation transportation market reform can be divided into the regulatory system reform, the competition introduction and the property reorganization. And its reform aim is increasing civil aviation supply, forming a reasonable ticket price and improving the market performance. The civil aviation transportation market reform in2002not only caused the changes of market structure including market concentration and barriers to entry, but also led to the change of market behavior including price behavior, enterprise organization adjustment behavior, service competition and new technology competition. The change of market structure and market behavior will bring change of market reform performance in civil aviation transportation industry, undoubtedly.Secondly, the construction of market reform performance evaluation system of civil aviation transportation industry. Based on the airline’s microscopic research angle and the industry performance evaluation theory of the industrial organization theory, following the design principle of the market reform performance evaluation system in civil aviation transportation, according to the market reform goal of civil aviation transportation industry including increasing the civil aviation supply, forming a reasonable price and improving the market performance, we can construct market reform performance evaluation system of civil aviation transportation industry from three dimensions as the ticket price, service amount and the market performance.Thirdly, the empirical research on market reform performance in Chinese civil aviation transportation industry. First of all, the empirical research of Difference-in-differences Estimation on market reform performance of ticket price shows that the market reform of2002in civil aviation transportation industry although makes ticket price dropped, but don’t bring the substantial ticket price decline. Then,the empirical research of Difference-in-differences Estimation on market reform performance of supply capacity shows that the market reform of2002in civil aviation transportation industry makes the total turnover volume, passenger turnover, goods load and flight mileage had been improved significantly, and has policy timeliness of one to three years. It shows that this reform has improved the supply capacity of civil aviation transportation industry indeed. At last, the empirical research of Difference-in-differences Estimation on market reform performance of market performance shows that the market reform of2002in civil aviation transportation industry improves the allocation efficiency of resources and technical progress efficiency remarkably. The fuel consumption is significantly decreased. But passenger load factor and overall load factor is not increase significantly.Based on the test and judgment of reform performance as the research object, the empirical research on market reform performance in Chinese civil aviation transportation industry has been conducted in this paper. The empirical research results have answered the question of whether market reform on civil aviation transportation industry achieved the expected effect and how about the degree of more or less the reform target. This not only can provide some empirical basis for the comprehensive evaluation of Chinese civil aviation transportation market reform performance, but also can provide new idea and new method for other natural monopoly industry reform performance evaluation.