The Research On Interest Group Obstacles To The Reform Of Monopoly Industries

The state-owned enterprise is always an important pillar of the national economy. The central enterprises who are the highest importance in the state-owned enterprise should take more responsibility. Some of the central enterprises may focuses on political responsibility and social responsibility, but some other central enterprises'development goal is through reform to break the monopoly and encourage competition in order to raise these industries'economy efficiency. For example oil industry, civil aviation, power industry, banking, telecoms industry and so on. However, after several reforms in these sectors the effect is not obvious. Market forces play their basic role in allocating resources is far from established. The central enterprises is always accused of high-wage, high-welfare and inefficiencies, and telecoms industry, petroleum, aviation, power industry and finance - these pillars of the national economy have becoming the battleground for the state and private enterprise. The effect of the reform tend to discount, many policy can not really implement or be bypassed.This paper based on the perspective of interest groups to study the issue of the monopolies central enterprises control failure. Firstly, describe the current situation of the control of China's monopolistic industry interest groups. Then utilize the model of hall and its extended models correlation, uses panel data to test the market forces of four major sectors. And utilize non-parametric DEA Measure the economic efficiency of these industries. Next I will illustrate the reform course of a few main monopoly industries. The problem of current reform of monopoly industries is slow will be map out. Through the model of three benefit main body to analyze the problem that regulatory agency is captured the monopoly industries, immediately after for monopoly interest groups impede reform by the various ways at before and after the reform two stages were discussed. As in these industries, the oil industry has quite high market forces, so I will took on the oil industry as an example to discuss. Through the econometric models to analyze the economic efficiency of the oil industry .At last select a series of monopoly industries political influence index, with the method of principal component analysis, Trying to get 1999 to 2010, the oil industry's political influence size and change. The article reviews China's reform policy is the result of the game among government regulations bodies, monopoly industry interest groups and consumer interest groups, the struggle between driving forces and resistance of the reform. Characteristics of consumer interest group are members are scattered, mostly vulnerable groups, short of political expression ability, while Monopoly industry interest group has a strong nuclear, strong ability to collective action and political expression ability. In addition, there is a natural link between the government and the monopoly industry interest group. In reality the government regulator is often captured by monopoly industries interest group through various ways, Form covert government and enterprise united. This is the main reason for regulatory reform of monopoly industries failure. Compared to other industries, through the econometric models of oil industry, we found their performance improving was rooted in abusing market power extra profits. And the political influence of the oil industry increased year by year. Interest groups can't achieve balance for unreasonable resources distribution. It might be a great hidden danger for the future society stable. So deepen the reform of monopoly industries is still the key of industry reform. This paper make specific policy recommendations for regulatory reform from the industry regulations, property right reform, institutional mechanisms and balance interest groups the four aspects.