A Study On The Distortion Of Production Factors In State - Owned Monopoly Industries

Since the reform and open policy30years, while the reformation on productprice has got some achievements by the developing of economic reform, thereformation of factor price is seriously behind. The factor price of our country hasnot totally turn to marketization, some factor price is strictly controlled by thegorvernment. First in terms of factor prices, the great diversity on getting factor andusing factor between the state-owned, especially the state-owned monopolyindustries and the non-state-owned enterprises of our country leads directly to thecost variance. Second, the distorted factor price stymied the reasonable resourceallocation, and result in economic imbalances.This article analyzed irrationality of the old brand state-owned monopolyindustry from the point of view of the distorted factor price. Through Thecomparison and difference between the state-owned and the non-state-ownedmonopoly industry, try hard to explain the problem of the state-owned monopolyindustry from the perspective of the cost variance. There are five chapters in thisdissertation: Chapter1, goes as the introduction of the whole thesis, involves thebackgrounds, aim, relevant content, method, the creation and deficiency of this study.Chapter2, presents the definition of the state-owned monopoly industry and Thefactor price distortion. Meanwhile, structures the analysis framework of the theoryby optimizing the related supply theory and determination theory of factor price.Chapter3, Analyzes the present situation of capital factors, labor force factors andland element of the state-owned monopoly industry. Take a swag estimate at realprice of capital, labor force and land in each profession and the domain. Making asimple economic comparison with them and analyzing the reason of the differencesof price factor. Chapter4, followed some methodologies to model those requirements.Calculating the different distortions of capital and labor force. The distortion ofcapital of the state-owned monopoly industry and of the relative labor price isseriously bad. Chapter5, both the policy proposals of the non-agriculturalemployments of the rural labor force and the results of the research are put forwardin the last part.The result turns out to be: non-state competitive enterprise is nearly20%-60% higher than the state-owned monopoly industries on using capital factor. The capitalmarginal product of state-owned monopoly industries is lower than non-statecompetitive enterprise. Both the state-owned competitive enterprise and non-statecompetitive enterprise exist a negative distortion, however some state-ownedmonopoly industries exist a forward twist. The state-owned monopoly industries hasa higher relative price distortion. Though the research, this paper put forward thecountermeasures and suggestions in three parts: first, we should carry forwardmarket-based reform of interest rates; second,realization the market pricingmechanism in labor market; third, speed up the reform of the land system.