The Property Right Theory And Compative Study On Oil Industry Development In China And UK

Through discussion on modes and implications of the government intervention, it is found that property right is an important tool for government intervention. The classical theory of government intervention, divided into two schools of interventionist and liberalism, does not hold diametrically opposite points; the controversy still exists about the validity of the state-owned property rights. In the context of contemporary China's property rights reform, some Chinese scholars, divided into two schools of pro and con for the reform, fiercely debate upon the problem of state-owned enterprises reform. Recently, the Chinese government announced that the oil industry is subject to state-owned monopoly. In order to sort out whether the property rights reform should be implemented or not, and whether there is a most suitable property rights system to certain industry, this paper focuses on the relationship between property rights system and industry performance in oil industry.Based on the SPSS analysis of 6 years'industry performance data of the world top 20 oil companies, each has different property rights systems. It is found that there is no eternal relevance between property rights and industry performance. Being state-owned or private that is only a matter of more stricter or looser regulation policy, can not be regarded as a determining factor of industry performance.UK is the most typical country with a history of reformed property rights. The thesis analyses the history and industrial policy evolution about British Petroleum Company (BP), and concludes that the reform on state-owned or private property rights policy depends on the international and domestic environment; each has played a positive role in the history of British oil industry.The oil industry in China shares not only common feature with general world oil industry, but also has many differences from other country's oil industry. By comparing China's oil industry with British oil industry, it is found that the two countries have different political, economic and cultural environment, not to mention the different forms of industrial reform. Combined with the analysis on China's oil industry and the world oil industries, it is concluded that the best way for government regulation of China's oil industry at the current stage is to keep to the state-owned oil property rights policy and the mechanism which can promote competition.