The Economic Analysis Of China's Public Enterprises' Regulation Reform

The paper centers on the state's network industries including telecommunications, electricity, railways, civil aviation and postal service. Their performance exert a significant influence on people's interest and political stability. Therefore, the study is of historic and realistic significance.In the traditional regulation theory, public enterprises have natural monopoly, which monopolize the industry. There have been many new regulation theories and methods from 1970's, which emphasize that competition can improve the monopoly industries'performance. Meanwhile, the developed countries carried out significant regulation reform in telecommunications, electricity, transport agency and so on. They introduce competition to improve the market performance and public welfare. The wave of reform swept across the world. There have been a series of reform in China's monopoly industries from the opening-up, which have produced an effect. But we have to study the effect. The long-standing problems caused by the monopoly, especially low efficiency, high cost and poor quality, have not been solved at the root. Therefore, China has to further reform the regulation with the globalization. It is important for China to improve the market efficiency and enterprises'performance.There are many studies from a different angle on the incentive regulation of the public enterprises. Early in the 19th century, the western countries realized that the regulation had great influence on the economy by studying the railway industry. In 1971, George J. Stigler analyzed the emergence of regulation from the demand-supply point in his'regulation economics'for the first time. Pelozman's(1976) and Becker's(1983) studies further developed the theory. The regulation economics explained the regulation's operational process including the regulation's objectives and policies.In 1981, Baumol elaborated the contestable market for the first time. The...