On The Model Of Natural Monopoly Industries Reform In Ownership Of China

The reform in China's natural monopoly industries is in progress and achieved a lot, however, it is not so optimistic as we have expected. The state-owned ownership accounts for most and resulted in inefficiency. China should learn from the experience of other countries in ownership reform. It is a beneficial idea for the government to take moderate measures and increase the number of non-state-owned companies gradually. Also, privatization should be promoted in order to accelerate the diversification in terms of ownership. Thus, companies will be state-stocked instead of state-owned, relatively state-stocked instead of absolutely state-stocked. This dissertation is to finger out the questions the government should pay attention to and the main mode applied in the reform in the ownership of China's natural monopoly industries through studying the factors that determine the efficiency and the mode applied in the reform of the ownership of natural monopoly industries abroad. Here, an important point should be made that all the study is based on the status quo of China's reform in natural monopoly industries.Natural monopoly as a form of monopoly, there are also the lack of competition caused by the monopolist's high prices, high profits and low output level of the loss of economic efficiency, so this requires government regulation. Faced with the inefficient monopolist can not promote the development of productivity, many scholars have advocated "split", but because of natural monopoly industries are significant economies of scale and scope of the economy, so that only maintain a monopoly structure in order to maintain Good value for money, if implemented highly competitive market structure, the lack of any vendor will be economies of scale and scope economies, companies would not have a lower cost structure, there will be high efficiency natural, so natural monopoly is not "a Demolition on the souls".