Research On China Tobacco Monopoly System

The tobacco industry in China is a special industry, both closely related with the government revenue, but also closely related with government regulatory actions. On the one hand, the tobacco industry is an important component of the national economy, to meet consumer demand and increase social state and local fiscal revenue; the other hand, the output of the tobacco industry products is unique to have an impact on human health, and also is a special consumer goods with certain rigidity of the consumption preference, so the majority of the world countries have implemented more stringent tobacco control regime.As we know, the tobacco monopoly system is the most important system to regulate the tobacco industry. With the Change of international political and economic situations, the state monopoly control system began gradually to market-oriented evolution, the majority of countries had abolished the tobacco monopoly system, but still persisted strict control to the tobacco industry. Since 1980's, with the pace of China'reform and opening up, the tobacco monopoly system was introduced in China, and the Chinese tobacco industry is also made important contribution to national economic development.The theory of institutional change initiated by the North is an important part of New Institutional Economics. Overall, the theory of institutional change is a matter of very wide theoretical system, it is concerned about institutional change in complex systems of the economic conflict of interest, provides a general and universal system of analysis. Over the years, institutional change theory has been the focused area in western social science research, but also the earliest and most enduring one of the theoretical basis and analysis tools for the China's economic problems since the reform and opening up of China. It is the specificity of the tobacco industry that determines to implement special regulatory regime to the industry, and thus determines a natural affinity between the industry with the institutional arrangements and institutional change. The development of the tobacco industry will be subject to the environmental impact of the system, both will give birth to a certain system requirements, but also have some dependence on the supply system of government; Correspondingly, from the point view of the government, the play depended on the adoption of its functions supply system must also bound to the characteristics of the tobacco industry under the system design and make the appropriate arrangements. Further, from the dynamic observation of the time dimension, institutional change in the tobacco industry and government action is a path worthy of further thought. Therefore, the theory of institutional change in new institutional economics revealed the law, in a sense, of China's tobacco monopoly system in the production, development and continuous improvement process. A more profound reason of the institutional change of China's tobacco monopoly system, is the conflicts between institutional innovation and the development of the tobacco industry, which is also explains the slow institutional change in the area; how to reform the tobacco industry to improve the efficiency of resource allocation, improve the international competitiveness of Chinese tobacco, is the problem we must solve; the deepening reform of the world tobacco control system, also requires market-oriented reforms in China. Based on the above understanding, I use the institutional economics as the basic theory to study the efficiency of China's tobacco monopoly system to improve and perfect the system. In other words, I want to find out the tobacco industry'specific trajectory of institutional change from the analysis of general change systems, to answer for the institutional reform of the Chinese tobacco industry. On this basis, the tobacco industry can continue to improve the relevant system design, to promote stable and healthy development of the tobacco industry.In this paper, including the rationality of the existence, history, evolution and reform path of the tobacco monopoly system, the author is in accordance with the questions, analyze and solve problems in order to arrange the structure throughout the paper. Based on the research order, the text is divided into seven chapters, the body of 6 Chapters: The first chapter is an introduction. The second chapter is full of theoretical Review and Comment to economic analysis. Literature review is divided into two main parts: First, a review of regulatory theory of tobacco industry, because the tobacco monopoly system is an important tobacco control system, so the rationality of its existence, the reform of the space, direction and strength of tobacco control with the whole systems are closely related; Second is the system detailed review of relevant theory of economics, especially for the new institutional economics and institutional change theory to systematically sort out and reviewed. The third chapter is an overview of China's tobacco monopoly system. I focus on the main content of the tobacco monopoly system, the measures of monopoly characteristics, changes in process and system efficiency analysis. I Pointed out that, the establishment of China's tobacco monopoly system, fully reflects the government as "economic man" to get the incentive to maximize revenue; tobacco monopoly system is essentially a national exclusive monopoly and administrative monopoly; tobacco monopoly system although the market may undermine fairness and efficiency, but ensure state revenue. Chapter IV analyzed the Motivation of Institutional Change in China's tobacco monopoly. First, intrinsic motivation is analyzed. On the one hand, because of the great rectitude of the efficiency loss caused by tobacco monopoly system, the government will also promote institutional change. On the other hand, under the existing tax system, for the internal driving force to increase tax revenue, the local government will fall into the classic "prisoner's dilemma" and the tobacco industry will fall into the quagmire of localism; the second is the external motivation. Based on China's accession to the World Trade Organization commitments on tobacco, the author analyzes the impact on the tobacco industry, and point out that, there is a large gap between the foreign tobacco companies with China's tobacco industry, both the scale of tobacco industry and the overall competitiveness and innovative ability of the product structure. Then that external pressure will lead China's tobacco monopoly system to change. Chapter V is an international comparative analysis of the tobacco industry control system. First, the international tobacco industry and the evolution control system are briefly reviewed, pointing out that the control system of the international tobacco industry is moving from state monopoly to a market in the direction of gradual evolution, but the trend of strict control of the tobacco industry has not changed; second, changes of control practices in tobacco control system in Japan and the United States, Canada and other countries tobacco were summarized; third is a typical analysis of reference to changes in national tobacco control systems and control practices. Chapter VI is about Changes in China's tobacco monopoly system. First I proposed targets and patterns of the reform of China's tobacco industry. Second, based on the distinguishing through incremental Institutional change and sudden Institutional Change, path dependence and time lag in Institutional Change, I pointed out that reform of China tobacco monopoly system should adopt a progressive form, which is dependent on the main system'changes. Although the tobacco monopoly system should be abolished in theory, but in practice there exists the value of tobacco monopoly system. At the same time, through the analysis of the induced institutional change and mandatory institutional change, I argue that, the Government should provide a favorable environment for the reform of tobacco monopoly system in China. Finally, I put forward specific policy recommendations for the reform of China's the tobacco industry.