Central And Local Interests In The Tobacco Monopoly System Research

The planned economic system will subsequently die as economic system transition of China completes gradually. However, in the tobacco industry, monopoly system which is an economic system as retaining the most intense features of the planned economy is still exist in a legal form. Indeed, high social costs caused by tobacco consumption illustrates the unscientific nature of tobacco consumption from an economic point of view. It is also the main reason for the implementation of tobacco regulation all over the world. And it is the theoretical basis of the implementation of tobacco monopoly system in China.But in tobacco monopoly system of China at present, the tax policies, distribution mechanisms and the executive right relationship of the tobacco industry affect the local government regulation, local protection, and many short-term and "partial" behavior.It also leads to many problems such as regional monopoly, price confusion, cardiopulmonary bypass and low brand concentration. It makes inefficient in production and marketing of tobacco and restricts the development space of tobacco industry.It causes a great waste to the community and makes tobacco companies of our country can not afford to deal with WTO rules and the challenges of economic globalization. Therefore, the research on the central and local interest in the tobacco monopoly system of China and the analysis on game and causes of the interests of the central and local government will have important reference value and realistic meanings in constructing the harmonious relationship between central and local government.This article starts from the government regulation theory and game theory interpretation. We analyze central and local interest conflicts combining with development status of tobacco industy in our country under government regulation. On the basis of the above analysis, we explain the crux of the game of interests between central and local governments by constructing game model. We analyze the causes of interest conflicts from the lack of the system in the integration of tobacco industry, unreasonable tax system, the inherent defect of tobacco management system, tobacco monopoly local legislation to provide legal basis for the local monopoly four dimensions.At last, we put forward countermeasures and suggestions on improvement of central and local government interests in the tobacco industry based on the experience that the developed countries deal with the relationship between central and local interests in the process of development in the tobacco industry.