Research On The Influence Of Administrative Monopoly On Income Gap

Since the reform and opening up,China's economic construction has been very effective.It has surpassed Japan and has become the second largest economy in the world.However,as the economy continues to grow at a rapid rate,the income gap gradually widens,and the people's livelihood issues brought about by the polarization between the rich and the poor are also highlighted.China is undergoing a period of transition and the economic system is relatively complete.The construction of the political system is lagging behind.The unbalanced development between the two has led to the emergence of such a special system as administrative monopoly.The so-called administrative monopoly refers to the government's use of its own public power to exclude market competition for state-owned enterprises,set up barriers to entry,so that they get more elemental resources and product pricing power,in order to obtain high profits.Undoubtedly,the existence of an administrative monopoly will inevitably have a certain impact on the income gap.Therefore,studying the internal mechanism of administrative monopolies affecting the income gap,and conducting empirical tests,and putting forward relevant policy recommendations based on the results will be the construction of relevant systems for our government.Perfection provides a certain theoretical basis.Through combing a large number of domestic literatures,this paper finds that although the results of studies on administrative monopolies and income gaps are numerous,most of them are based only on the industry perspective and do not distract from their internal mechanisms.Therefore,according to Yang Xiaokai's new classical economics framework and the theory of division of labor,this paper first uses the inframarginal analysis to construct a theoretical model to analyze how administrative monopoly influences the income gap,and concludes whether the government adopts price control or job selection.Administrative monopoly means will lead to unfair distribution and widen the income gap.Secondly,this paper uses the two indicators of price distortion of capital factors and price distortion of labor factors to measure the degree of administrative monopoly,and conducts nationwide and subregional regressions on panel data of provinces from 1997 to 2015.The results show that the income gap and administration Monopoly has become a positive relationship,but also affected by the level of human capital,investment growth rate,inflation rate,indicating that administrative monopolies will intensify the unfair distribution of income,so the government needs to take certain measures to eliminate administrative monopolies,reduce industry entry barriers,and protect the market.Fair and free competition,and give full play to the market's "invisible hand" regulation,making the private economy and the state-owned economy complement each other and make common progress,can make the market economy develop in a healthy and orderly manner,and from the roots to curb the expansion of the income gap.