An Analysis On Certain Macroeconomic Effects Of Local Administrative Monopoly

Based on the reasonable analysis of local administrative monopoly, this paper raises price rent-seeking local administrative monopoly and factors' price distorting local administrative monopoly. Then an emphasized analysis is made on the relationship between local administrtative monopoly and similarity of industrial structure, overcompetition, repetitive construction, scale ecomomy, technological progress and extensive economic growth. At last, some suggestions are proposed.The second chapter analyzes the relationship between local administrative monopoly and similarity of industrial structure between districts. First, the circumstance with price rent is analyzed. Then a general model is established. Next, the coefficient of similarity of industrial structure is calculated between provinces. After that, an empirical test is given on the basis of panel data. Finally, how to calculate the reasonable extent of similarity of industrial structure is given.The third chapter analyzes the relationship between local administrative monopoly and repetitive construction and scale economy. First, the monopoly competition model is introduced to make out the effect on the repetitive construction and scale ecomomy. Then a two-district, two-product model is built to analyze the mechanism behind this effect. Next, the scale efficiency in steel and automobile industries is calculated, based on which the theoretical analysus is tested.The forth chapter analyzes the relationship between local administrative monopoly and technological progress and extensive economic growth. First, the "income effect" and "substitution effect" is given and then the influence on the real technological prigress is analyzed. Next, the technological progress between 1978 and 2006 is calculated, and three stages are categorized. Finally, the result is testified.The last chapter raises some suggestions on how to eliminate local administrative monopoly from four perspectives: the reformation of assessment system of achievement in post, the development of market economy, the sttrenthening of institutional restraints, the cooperation system between local governments.