The Railway Practice Analysis Based On The Motivations Of Enterprise Spin-off

The study on the theory of network industries, along with their surging practical reforms, has been developing quickly across the world since 1970s, these reforms are mostly directed to spin-off. But so far the theory of organization on network industries has not been set up yet, and network reform is still a puzzle with which economists at home and abroad are confronted. The probe into railway industry will contribute to form the theory of network reformation finally since railway is a typical network industry. The paper considers the railway industry as the main subject, and analyses the motivations of enterprise spin-off within the framework of transaction cost economics theory, modern competition theory and refocusing theory. This dissertation gives some suggestions for the development of the railway industry.This dissertation analyses the railway practice from the angle of transaction cost economics theory and Asset Specificity theory, point out the railway should build transportation corporation or enterprise group with proper scale, conforming to the rule of trying to reduce the transaction cost caused by the division of asset specificity.This dissertation analyses the railway practice from the angle of modern competition theory, points out the railway can form the competitive market structure of certain extent through spin-off and reconstruction properly; In order to improve the industrial efficiency and market performance, the railway industry should form oligopoly competition on the railway trunk line based on keeping the lowest economics of scale and scope, try to keep the integrality of the whole system while inducting competition. It is also quite important to keep the harmonious and close relationship of all parts. However, the reform of inducing competition is a long course for Chinese railway because of the lack of Chinese railway transportation infrastructure and market operating experience.This dissertation analyses the railway practice from the angle of refocusing theory. Points out the railway should peel off bad assets, intensify the main business, strengthen the core competition, and develop diversified business orderly and properly, embodying the strategy of refocusing.