Research On Barriers To Entry And Government Regulation Of Public Utilities

Since the reform and the opening up,private economy in China has procured huge development , but the lack of investment channel has bottlenecked the further development of it,owing to the restricted regulation of monopoly industries.So, private capital has to speculate in the market, which disturbs the whole economy seriously. Therefore, it is very necessary to broaden the investment channels for private enterprises. In contradiction to this situation, fund"bottleneck"has restricted the sound development of public utilities. Therefore,both of the theory and practical areas are paying attention to how to invest private capital into the public utilities. However,there are many barriers when private capital entry into the public utilities.Based on the above reality, this paper study barriers to entry of public utilities, then propose the concrete measures to overcome the barriers, and, at last, construct government regulation policy of public utilities after privatization. In addition to introduction, this paper is divided to four sections:Firstly, according to the need of research, chapter one makes a study on theories of barriers to entry and government regulation policy of public utilities. This chapter discussed privatization of public utilities, barriers to entry theory and government regulation after privatization. The chapter summarizes the previous research and looks up the deficiency, then points out the research contents and innovations in the paper.Secondly, chapter two analyses the actual state of the investment of private capital in public utilities area. According to the deregulation policy and investment practices of private capital, the chapter summarizes the ways to invest public utilities of private capital.Thirdly, chapter three makes research on barriers to entry of public utilities. The chapter studies the dominant and recessive barriers to investment of private capital in public utilities, and then makes empirical test as to the influencing factors of barriers to entry based on the data of provincial level. The empirical analysis shows that government deregulation policy didn't help lower barriers to entry significantly and imperfect market mechanism leaded to kinds of recessive barriers. Lastly, based on the above analyses, the chapter proposes the concrete measures to overcome the barriers.Finally, chapter four constructs government regulation policy of public utilities after privatization. Deregulation doesn't means without government regulation. Privatization of public utilities especially needs government regulation. This chapter constructs government regulation system in utilities, which includes regulation on entry, price regulation, quality regulation, network regulation and information regulation.This paper may be innovative in the following areas:First, this paper makes research on kinds of dominant and recessive of public utilities, especially barriers due to malicious obstruction of state-owned business and imperfect market, explaining"glass-door"phenomenon and"spring-door"phenomenon and proposes the concrete measures to overcome the barriers.Second, this paper makes empirical test as to the influencing factors of barriers to entry based on the data of provincial level. The empirical analysis shows that government deregulation policy didn't help lower barriers to entry significantly and recessive barriers because of imperfect market mechanism restrict private capital of investing public utilities.Last, this paper completely constructs government regulation policy of public utilities after privatization. Deregulation doesn't means without government regulation. Privatization of public utilities especially needs government regulation. This paper constructs government regulation system in utilities, which includes regulation on entry, price regulation, quality regulation, network regulation and information regulation.