The Research For The Reform Of Table Salt Monopoly System Based On The Institutional Change Theory

The table salt monopoly system was implemented in the Spring and Autumn Period and Warring States Period in China.Ancient salt tax has always mainly supported national finance,but after the implementation of the reform and opening-up policy,the contribution rate of salt tax has declined gradually and reasons for the existence of the system changed to safeguard the public basic life.Recently,the voice for salt industry reform has been increasing,the rationality of its existence has been questioned.Although the Salt Industry Reform Plan promulgated in 2016 is relevant to some progress,the reform is still based on the salt industry monopoly system,which makes the salt industry still has some problems to be broken through.This is also the key point of the monopoly system causing controversy again.With the proportion of salt tax in the national financial revenue decreasing and the regional distribution characteristics of iodine deficiency in China,the main reasons for the existence of salt monopoly system gradually turn to support the popularization rate of iodized salt and salt safety.However,the system also exposes some drawbacks in reality such as market segmentation and local protection,internal rent-seeking problems,difficulties in obtaining iodized salt,the absence of property rights,the low efficiency of principal-agent mechanism and the negative influence of private salt,which affect market performance.In addition,iodized salt and salt security can not only rely on the monopoly system,there are more effective system for the industry.Therefore,whether the monopoly system can continue for a long time in salt industry remains to be discussed.In order to analyze the reform of salt monopoly system in China deeply,firstly we sort out the origin and evolution of salt monopoly system in history based on the theory of institutional change.We also analyze the evolution combining the induced institutional change and mandatory institutional change.Secondly,we use the property right theory and the principal-agent theory to discuss the theoretical basis for deepening the reform of the salt monopoly system,and analyzes the welfare effect of the arrangement of the system with the help of mathematical model based on market segmentation and local protection.Thirdly,we use panel data of salt mining industry from China industrial enterprise database to analyze the performance of the salt monopoly system as the empirical evidence for the reform of the monopoly system of salt industry.Facing the difficult situation of the reform,we analyze the reasons for the hindrance of the reform from the path dependence theory in institutional change,including the coordination effect,learning effect and adaptation in the reform.The obstruction of interest groups is also included.Finally,according to the theoretical and empirical analysis,we come to conclusions and put forward policy recommendations.This paper uses qualitative and quantitative analysis methods to draw the following conclusions dynamically:firstly,the way of salt industry system evolution in China is changing from mandatory to induced gradually.Secondly,the necessity of salt industry monopoly system becomes weakening gradually.Thirdly,excessive industrial control policies affect the salt industry performance negatively.Fourthly,the reform of salt industry is hindered by the path dependence of institutional change.Fifthly,the deregulation of salt industry is an inevitable choice to conform to the market-oriented reform.Therefore,this paper suggests that we should adopt the mandatory policy of institutional change to promote the reform process in light of the specific situation of institutional demand.Then,constantly improving the property rights structure of salt industry and making salt enterprises operate independently.In addition,introducing market competition in salt industry and making full use of price mechanism.Finally,in the process of reform the government should to relax economic regulation and strengthen the social regulation of salt industry step by step.