Research On High-income Issues Of Administrative Monopoly Industries

With the deepening of reform forward, the income gap between different industries has become a major issue of common concern of the society. In the area of income distribution caused by the administrative monopoly industries with high income bring about sharp contradict-ion increasingly, research administrative monopoly industries in high-income issues are currently challenging practical problem.Unlike Western countries, the monopoly appeared in China’s economy, mostly we call it administrative monopoly which dependent on non-economic means to obtain market dominance. Industry’s administrative monopoly originates born in planned economy system; It is the result of enterprises interact with government departments. Statistical data and empirical analysis shows that the degree of administrative monopoly highly correlated with industry revenue, administrative monopoly is the main factor leading to significant widening income gap of industries.The reason of administrative monopoly industries’ high revenue is multifaceted. Because of the planned economy system and the game between interest groups, The vested interest group and regulation group build monopoly market structure through the administrative authority, to make profit with the high pricing, thus it bring high, stable and hidden income and welfare to the industries. At the same time, omissions, failure regulation, as well as gaps in the legal system to further reinforce this pattern.The high income of administrative monopoly industries is not conducive to the healthy development of the national economy, but also affect the harmony and stability of society. To control this problem at the source, we must base on cutting off the interests relationship between the government and enterprises, and reform the property rights system, then we can break the interest pattern of privileged. At the same time, the concrete measures like reforming the monopoly pricing, establishing double control system of wage, clearing up the extra-wage income, enhancing the social can come along.