Research On Regional Administrative Monopoly,Factor Market Distortion And Technological Progress

Technological progress reflects the quality of a country's economic development.However,there are a series of problems behind China's rapid economic development.The urgent task is to promote the transformation of China's economic development mode to be driven by technological progress.Because of the special characteristic of administrative monopoly in our country,the local governments use administrative power to set up various administrative barriers,which affect the formation of a unified market mechanism seriously and hinder the technological progress of our country.On the other hand,with the gradual improvement of commodity market,the factor market of our country is obviously unreasonable,which impedes the technological progress to a certain extent.Therefore,by comparing and analyzing the influences of regional administrative monopoly and factor market distortion on technological progress,as well as examining the impact path,this paper combines the two aspects of government and factor market,in order to clarify the relationship between them,and put forward corresponding suggestions to promote China's technological progress.The paper firstly introduced the basic characteristics of regional administrative monopoly in China,and analyzed the mechanism of regional administrative monopoly and factor market distortion affecting technological progress.Based on this,the paper measured the regional administrative monopoly,capital and labor factor market distortions and technological progress indexes of the whole country and 30 provincial-level regions from 2001 to 2016 by the use of positive and negative indicators,production function method and DEA-Malmquist index method respectively.The results showed that the degree of regional administrative monopoly in China was generally on the decline,which was relatively high in the central and western regions.There were distortions in both capital and labor factor markets,generally slowing down.However the distortion in the capital factor market was still serious.Since the 21st century,the level of China's technological progress had been at a low level on the whole,and the technological progress was mainly driven by the eastern region,especially by the cities such as Beijing,Shanghai and Tianjin.In the empirical study,based on different econometric regression models,the paper firstly analyzed the separate effects of regional administrative monopoly and factor market distortion on technological progress,then added their interactions to test the path problem.The results showed that regional administrative monopoly,capital and labor factor market distortions both had adverse effects on technological progress.The former had a greater impact and lags behind.And the effect was mainly performed in the central and western regions,which relatively small in the eastern region.Besides,regional administrative monopoly would inhibit the development of technological progress by distorting capital and labor factor markets.That was to say,distorting factor markets was a path for regional administrative monopoly to affect technological progress.In addition,this paper also found that the endogeneity of regional administrative monopoly would made the impact on technological progress estimated by OLS method underestimated.Therefore,regional administrative monopoly and factor market distortion are both important factors affecting China's technological progress,and the former is the fundamental reason.In view of these two impacts,this paper provided several relevant suggestions to promote China's technological progress from the perspectives of breaking up the regional administrative monopoly and correcting factor market distortion.