Regional Administrative Monopoly And Its Role In Research, Industrial Competitiveness

The decentralization reform since1994is one of the most important changes of the governance structure in China, local governments have made important contributions to the regions'economic development and employment levels to enhance. But in the process of the decentralization reform, due to the local governments'excessive interventions of markets, the regional administrative monopoly has appeared. Local governments intervene and replace the cross-regional competitions in the markets, on the other hand, restrict the markets allocations of the resources in the regions by the administrative powers. It limits the market to optimize resource allocation and makes a factor allocation distortion and welfare loss. The regional administrative monopoly causes recessive market segmentation due to the zone by the local government. The industrial layout and aggregation are subject to severe inhibition. It is not conducive to the formation of area's comparative advantage to play and specialize or can not achieve economies of scale, but lead to the industry isomorphism. Industry is a middle concept which combines macroeconomics with microeconomics. The formation and development of the regional industry are the nature of the region's economic development. Therefore, the regional administrative monopoly on industrial development largely reflects the impact of economic development. Beginning with the decision-making motive of local government of interfering with the normal operation of the market economy, this article analyzes the root causes of regional administrative monopoly. On the basis, the paper analyzes the impact of the regional administrative monopoly on the industrial efficiency and measures the regional industrial efficiency by building easily calculated indicators, and then makes a regression analysis to verify the theory. Finally, the article gives the policy recommendations to eliminate regional administrative monopoly.The paper makes a theoretical analysis to the regional administrative monopoly. It begins with complete information static game to explain the formation of regional administrative monopoly, and then analyze the regional administrative monopoly's characteristics, ways and the differences between the regional administrative monopoly and the industrial administrative monopoly, and then use the consumer surplus and producer surplus to calculate social welfare losses, finally use the regional administrative monopoly index to verify the theoretical analysisOn the basis, the article analyzes the content and impact factors of industrial competitiveness in the region. It discusses the influence mechanism of the regional administrative monopoly on industrial competitiveness and calculates the regional industrial competitiveness index on2000-2003and2005-2008. Finally the article makes an OLS regression analysis to test the theoretical analysis. Finally, the author gives policy recommendations to eliminate regional administrative monopoly by pushing forward the reform of the administrative system, deepening fiscal and tax reform, promoting state-owned enterprises and state-owned assets management system, establishing the regional cooperation and coordination mechanism and strengthening the legal system.