Reserch On Administrative Monopoly In Public Financial View

Bringing China to the road of prosperity and development is the wish of every Chinese,and it is also a goal that people of public finance even whole economics are committed to achieve.We are trying to complete a standard market economy.At the moment,the acute structural contradictions and low level economic quality in China have all brought great downward pressure on the economy.As a matter of fact,speed,structure and effectiveness are only economic appearance.What being refracted is the incompletely resolved in-depth institutional contradictions.The market economy system in China is still imperfect,and the administrative monopoly of the old system,which is caused by intentional market closure and segmentation,is the most significant contradiction that constrains the economic development of China.This thesis discusses the administrative monopoly in public financial view.It uses methods of standardizing analysis,empirical analysis,logical analysis,historical analysis and econometrics analysis,in order to probe into the financial causes of administrative monopoly and the influence mechanism of administrative monopoly on finance and national economy,proof the significance for the economy and fiscal revenue to be brought by the elimination of administrative monopoly and the systematic reforms,and propose the policy recommendations and procedures for addressing administrative monopoly with a focus on reform of fiscal and administrative systems.This thesis is divided into 9 chapters:Chapter One is an introduction,explaining the background for choosing the research topic and introducing research purpose,research methodology and the thesis structure.Chapter Two is Literature Review,bringing together the previous research on administrative monopoly,absorbing and analyzing the results to form the author 's own opinions and make preparation for this analytical research.Chapter Three is Theoretical Analysis Framework.Based on the existing research results,it raises the author's opinion on the concept of the subject,studies the nature and characteristics of administrative monopoly,and limits the scope for the subsequent part of the research.It then elaborates on the theoretical bases in economics and finance in addressing administrative monopoly,including the theory of Karl Marx,the resource allocation theory of"the invisible hand",the theory of public goods,the imperfect competition theory and the single market theory,etc.,providing solid theoretical guidance and support to the research.Chapter Four combs through the historical evolution of administrative monopoly both in China and overseas,with the purpose of aligning the logic with the history,and conforming the theoretical analysis to the reality.It aims to uncover the fundamental nature of administrative monopoly from its origin and development course,and to draw experience from other countries' efforts,search for the measures in addressing administrative monopoly,and identify the key of resolving this issue.Chapter Five analyzes the current causes of administrative monopoly in the country,with a special focus on the fiscal system,taxation system and financial asset management policies both at central and local government levels,laying the groundwork for proposing targeted measures in the following chapters.Chapter Six studies the influence mechanism of administrative monopoly in the financial and economic system.Economics,especially Western economics,places a great emphasis on the study of transmission mechanism,which,however,is much neglected in China.By studying on the transmission mechanism,the research objectively and comprehensively identifies the impact of administrative monopoly on all aspects of the economy and the society,and conducts an objective evaluation on its advantages and disadvantages.Chapter Seven is an econometric study,in attempt to quantify the growth of GDP and fiscal revenue brought about by the typical systematic reform for eradicating administrative monopoly.No precedent of adopting such a quantifying model has been found in other papers on this topic.In this model,Marx's theory of average profit rate,reproduction theory and modern econometrics are adopted to combine the Marxist theory with tools of western economic models.Chapter Eight discusses on the target mode and path options,advocating for a balanced reinforcement on both efficiency and national security in establishing a standard market economy.To this end,the thesis proposes the steps and measures to address administrative monopoly,first through deepening reform,establishing a security system,completing the systematic and security preparation,and then eradicate the administrative barriers,crack down on administrative monopoly and achieve extensive and fair competition.The thesis put a special emphasis on deepening the reform of the fiscal system and the administrative system.Chapter Nine summarizes the whole text,extracting the enlightenment of methodology further.The main conclusions of this thesis include:1.By comparing administrative monopoly with other monopolies,we draw the conclusion:The human intervention of administrative monopoly in the mobility and allocation of factors impedes competition,and thus leading to uneven opportunities for the subjects of market.Its essence is supra economic attribute and discriminatory.2.Through historical research of administrative monopoly at home and abroad,the following implications are concluded:Viewing from overseas situations:The competition around administrative monopoly is actually the issue regarding whether the interests should be shared or monopolized.Administrative monopoly is not only the product of transition towards market economic system and the initial phase of market development,but also,from the general extent,the possible product that will be generated when original market faces a larger market.The centralized allocation of resources in a country can benefit temporarily but not for long.It is highly necessary for transitional countries to enact laws and regulations over anti-administrative monopoly.Allowing federal or central authorities to have higher economic management rights than local authorities is a solid guarantee to maintain unified market.Thorough resolution of administrative monopoly relies on strengthening awareness of equality and the establishing competitive culture.Viewing from domestic situations:In terms of fiscal revenue,administrative monopoly does increase fiscal revenue in the short term,but it is the opposite policy in the long term to lose potential revenue.The administrative monopoly has not the financial function of restraining the gap between the rich and the poor,but it forms a new unfair distribution.The planned economy includes administrative monopoly but not administrative monopoly.Administrative monopoly has a close relationship with the path finding of the gradual reform in our country.China's administrative monopoly in modern times has historical inheritance.3.Through normative analysis and empirical analysis,the reasons of administrative monopoly of our country are:The existing problems in the fiscal systems,taxation systems and fiscal management policies at both central and local levels are important factors causing administrative monopoly.4.Normative analysis and empirical analysis show that administrative monopoly has systemic influence on finance and national economy.The analysis shows that the regions featuring administrative monopolies are closed to one another,making their advantageous industries difficult to fully develop outside,thus imposing potential losses on the fiscal revenue of all the regions.Administrative monopoly narrows the space for investment and employment,increasing the burden on financial expenditure.In industries of administrative monopoly,government procurement policies become ineffective.The barrier mechanism of administrative monopoly is blocking the transfer of capital and labor,leading to the coexistence of over-supply and under-supply in China,which is an important factor behind the frequent supply-side structural imbalance in China's economy.In a market economy where prices are determined by the supply and demand through the market mechanism,administrative monopoly leads to unequal exchanges between the industries with and without administrative monopoly,and transfers part of the profits generated by industries of competition to industries of administrative monopoly.This is the source of profits for administrative monopoly,which is then nibbled by the salaries within the industries,exacerbating income polarization in the society.The widening gap in income distribution further causes the imbalance of consumption structure and the failure of monetary policies,which hinders the improvement of the country's overall economic quality and economic security.5.The quantitative research through econometric model shows the reform dividend that can be unleashed in successfully managing this institutional issue of administrative monopoly,allows China to shake off the new economic and financial normal,and to enjoy another precious decade of rapid growth.6.The objective of addressing administrative monopoly is to achieve a balanced focus on both efficiency and national security in establishing a standard and healthy market economy.The approach to address administrative monopoly is deepening the financial reformation and other reformation,first to make full preparations,including ideological,institutional andsafety preparations,and in this way administrative monopoly can be eventually eradicated.7.The normative nature of the basic system in a society is particularly important,and we should avoid using distorted governance over distortions.The effective way to solve the problem is to simplify the complicated system.