Research On Innovation Of Administrative System Of Chinese Tobacco Industry

As the world's largest population, Chinese tobacco production and consumptionis ranked first in the world, so that tobacco industry is the main source of nationalfinance income and plays an very important role to national economy and socialdevelopment. China has executed tobacco monopoly system since 1983, andestablished legal status of the system through legislation. Under the guidance of themonopoly system, the tobacco industry has made achievement attracted people'sattention, which changed the chaotic sistuation of development to the improvement ofthe product structure and quality. However, as China macroscopical economy reformand the establishment of market economic system, tobacco monopoly systembecomed the last stronghold of planned economy, which provoked lots of doubts fromdomestic public and foreign experts. Since 2001, China officially became a memberof the world trade organization, countries in the world put forward some requirementsto Chinese tobacco market,so that the liberalisation of the tobacco market becomesgeneral trend. Whether the current Chinese tobacco industry could resist the influx offoreign low-cost high-quality tobacco goods is the problem worth discussing. Inaddition, the current monopoly system is too rigid to mix well with the socialistmarket economy. It requires Chinese government to improve the tobacco industrymanagement system, so that it can be adapted to the reform of socialist marketeconomy. Therefore, the reform of the management system of tobacco industry isimperative, and the outcome of the reform will directly determine the future fate ofChinese tobacco industry.This paper is a in-depth innovation of tobacco industry management system,which is in the angle of tobacco industry sustainable development, and based on theChinese national conditions and the previous relavent research results. It doesresearch on the problems existing in the current tobacco managment system andempirically analyzes the tobacco industry market structure and economic benefits bythe methods of analysis, comparison and empirical research, based on the new institutional economics theory frame and regulation economics theory frame, and thenlook for tobacco industry management system malpractice and causality. The finalresult of this paper is to explore the Chinese tobacco industry management systeminnovation by drawing lessons from the experience of foreign tobacco industrymanagement.This paper consists of 6 chapters. The first chapter is introduction. This partclarifies the research background, expounds the research's theoretical and practicalsignificance, introduces the research methods and research framework, analyzes theresearch's possible innovation and shortage, reviews and comments the relevantresearches of tobacco industry management system.The second chapter introduces relevant theories of tobacco industry managementsystem, which is to make bedding of the paper's following analysis. Relevant theoriesinclude the new institutional economics theory and the government regulation theory.The tobacco industry management system innovation cannot exist without the supportof the new institutional economics theory, so that new institutional economics theoryis the base theory of this paper. It relevantly includes transaction cost theory,enterprise theory, property rights theory and institution change theory. The tobaccoindustry in China is a state monopoly industry, which decides the necessity ofgovernment regulation, so that the government regulation theory is included in thispaper. The government regulation theory contains the connotation and target,government regulation of the economy and society, the reform of governmentregulation.The third chapter does the research on the history evolution and current situationof the Chinese tobacco industry management system. First of all, the evolution ofChinese tobacco industry management system can be divided into three periods,namely, the Ming and Qing Dynasties, the period of the Republic of China and newChina period. Then we can get the characteristics of history evolution that generalizefrom the analysis of the power, mode and route for each evolution period, which welloffer historical experience lesson to the management system innovation. Secondly, itcan provide the historical basis for Chinese tobacco monopoly system innovationfrom the analysis on the evolution of Chinese tobacco monopoly system from buddingto eventual establishment during each period. Thirdly, it can provide direction for theinnovation of the management system from analysis on current situation , problemsand reasons of Chinese tobacco industry management system. In the fourth chapter, it does an empirical research on Chinese tobacco industrymarket performance that under monopoly management system. This chapter analysesthe tobacco industry's market operation from two aspects. One is the market structureanalysis, including the market concentration, product differentiation, barriers to entryand exit. The other is the tobacco industry's market performance analysis which isresearch on a sample of tobacco enterprises'yield, profits, costs and other indicatorsby using the factor analysis and data envelopment analysis. It pointed out that thereare many management problems in Chinese tobacco enterprises, which are caused bysystem defects. So it's necessary to analyze the reasons, form of expression and therestricted factors of those management problems.The fifth chapter comparatively studies on the Japanese and American tobaccoindustry management system. These two countries'tobacco industry managementsystems are the most significant to the system innovation of Chinese tobacco industry.Through the analysis of the two national tobacco industry management systemdevelopment history, recognize the two National Tobacco Group 's growth process,find Chinese tobacco industry management system deficiencies by contrast studies,get inspiration of further system innovation.In the sixth chapter, it suggests specfic measures for Chinese tobacco industrymanagement system innovation, which are based on the first five chapters. Chinesetobacco industry system innovation should adhere to the tobacco monopoly system,under which premise the system reform could start. The tobacco industry systemreform should include four aspacts, which are reducing the transaction cost, perfectingservice system, strengthening market construction and deepening diversificationstrategy. The results of such reform well be that lots of system problems are solvedand Chinese tobacco industry's competition ability is promoted.