Theoretical Analysis Of Bringing On Competition In The Market For The China Railway Industry

The paper puts forward theoretical basis of bringing on competition in the market forthe China railway industry, with a brief presentation aboutthe relational market theory. Next, the article analyses the characteristics of the Chineseeconomy railway, it points out that China railway industry leads to social welfare lossesbecause of a lack of competition.Then,the practical studies do not indicate that thereexists a complete Economy of Scale in China railway industry. And the paper putsforward the contents of system reform for China railway industry.Finally,the paperstates a number of feasible policy suggestions to promote the whole railway industry'sefficiency.