A Study On The Impact Of Chinese Regional Administrative Monopoly On Regional Economic Growth

Since the reform and open-up,China has changed a lot in both economic and political area. Regional government which represented provincial government played a vital role.But the regional governments, especially provincial government,to be the maker of the regional policy and performer of the central-government policy. As a consequence, it brought great difficulties to our marketing integration and distribution and usage of resource.Significance of this study lies in quantitative analysis, to explore the relationship between local administrative monopoly and regional economic growth,the proper handling of local governments at all levels between the delicate relationship between the market and the region, and ultimately making market overall allocation of resources should play a central position.This study is based on the relevant economic theory. Reference to ISCP framework built by Liangchun Yu(2009), this article has collected the authority monopoly index and GDP data from twenty-nine provinces from 1998 to 2013. By analysing and calculating these datum and using a model based on economic growth in expenditure and increase local administrative monopoly index, the author carried out empirical study about the influence of regional adimistraion monopoly on regional economic growth and subdivided the influence to twenty-nine provinces.The results show that local administrative monopoly and regional economic growth has a negative correlation.So improve local administrative monopoly will hinder the growth of the regional economy,and the monopoly factor is-10.40640. But this effect specific to each provincet. Finally, we put forward some suggestions from provincial contact, government functions, fiscal and taxation system, promotion mechanisms and legal constraints.