The Effect Of Regional Administrative Monopoly On Efficiency Of China's Producer Services

In recent years, producer services in the world have developed rapidly, kept rising its proportion in the national economy and gradually become the leading force on the national economic efficiency and growth. Since the reform and opening up, the manufacturing industry in China have got rapid development. However, the producer services, which is to serve the manufacturing industry, doesn't get the rapid development corresponded. So the discussion of the causes that affect the development of producer services has become one of the focus issues of academic research.This paper discusses the causes of the slow development of producer services in China from the point of view of regional administrative monopoly. Firstly, the paper briefly discussed the cuases for the formation of regional administrative monopoly, its manifestation and the harmfulness. Then the paper analyzes the influence of regional administrative monopoly to producer services in China from the theoretical point of view. And then the paper makes an empirical test on the previous theoretical analysis through a panel data model. The test proves that regional administrative monopoly has significant effect on the efficiency of producer services in China. It shows that the deepening of regional administrative can have a negative influence on producer services. Finally, according to the empirical result, the paper gives some suggestion for improving the efficiency of producer services in China.