Regulatory Reform Of Natural Monopoly Industries With The Existence Of State-owned Economy

The regulation and regulatory reform of natural monopoly industry have longbeen in the process of exploring, practicing and amending. Due to the technical andeconomic characteristics of natural monopoly industries, the market mechanisms cannot achieve the optimal allocation of resources and the improvement of social welfare.Thus, many countries take measures to regulate the natural monopoly industry. Butwith the further theoretical studies and the change of objective conditions, some majorcounties have begun to promote the regulatory reform of natural monopoly industriesin a wide range since1970s. Compared with western countries, there are so manygeneral characteristics and particularities of the regulation and reform of naturalmonopoly industries in China.In our country, the state-owned economy occupies an absolute dominant positionin natural monopoly industry. This kind of enterprise property right structure leads tothe mutual intertexture of a variety of monopoly, makes the powers and responsibilitiesnot clear, and exacerbates the complexity of regulation of natural monopoly industries.Faced with the lagging behind of management system and the low productionefficiency, to speed up the adjustment of state-owned economy and the reconstructionof regulatory system of natural monopoly industries are the requirements of improvingthe socialist market economic system and coping with economic globalization. So thisthesis explores the particularity of regulatory reform and the regulatory mechanismdesign of China’s natural monopoly industries.This thesis comprises seven chapters. The first chapter—the Introductionintroduces the issues as well as its significance, reviews relevant literature and explainmy own approach and the structure of the thesis. As the theoretical basis for furtherstudies, Chapter2and3are the general theory about natural monopoly, state-ownedeconomy and government regulation. Define the relevant concepts; Analyze the theoretical basis of state-owned economy exists in the natural monopoly areas fromtwo perspectives—the technical and economic characteristics and the nature of China’sstate-owned economy; Based on the understanding of the range as well as the technicaland economic characteristics of natural monopoly industries, it’s necessary to regulatethese industries.Chapter4provides an overview of the regulatory reform of natural monopolyindustries in major developed countries. Through comparative analysis, we are goingto see the common features of developed countries in the practice of regulatory reform,in order to provide some beneficial reference for China’s regulatory reform. Taking theindustries of electricity, Railway, telecommunications and civil aviation as examples,chapter5describes the current situation of the regulatory reform of China’s naturalmonopoly industries with the existence of state-owned economy, and reveals the mainproblems faced in this process. Meanwhile, compared with developed countries, thischapter analyzes the particularities of the regulatory reform of China’s naturalmonopoly industries in the circumstance of the existence of state-owned economy,Chapter6analyzes the relationship between the structure reconstruction andregulatory reform of natural monopoly industry from three aspects—enterpriseownership structure, market structure and governance structure. Then around thestructure reconstruction, we explore the target mode and the path of the regulatoryreform. In addition, as the supporting mechanism of the regulatory reform of naturalmonopoly industries, this thesis discusses the adjustment of state-owned economy ofthe natural monopoly industries from the consumer’s point of view. The final chapter isconclusion, provides a summary of the basic thoughts about improving the industrialstructure and regulatory reform mechanism of China’s natural monopoly industries.