The Research On Franchise Operation In Public Transport Industry

Since the reform and opening up, municipal utilities of china accelerate the paceof reform. Since the1990s, as one of the municipal utilities, China’s public transportindustry broke through the monopoly of inefficient government structure,accelerated the process of marketing, introduced private capital to compete andachieved some effect of the reform. The reform of public transport industryincreasingly exposes some deep-seated problems in the process of privatizationreform, as the absence of government regulation. It’s very necessary to study theproblems on such as what’s the direction of public transport industry reform, what’sa role should the government play in public transport industry regulation, how toestablish the franchise operation system of public transport industry suitable forconditions of china. This article takes the regulation reform of China’s publictransport industry as a clue and franchise operation reform as a study. This articletries to establish the franchise operation of public transport industry suitable forconditions of china and provides theoretical and practical policy measures to regulateon public transport industry for the government.This article uses the method of combining theory and practice based on theanalysis of former literatures and takes empirical analysis combined with real cases.This article explores franchise operation of China’s public transport industry andprovides a reference for government regulation. This article consists of five chapters.The first chapter introduces the background, significance, method, technologyroadmap of the study and reviews the research literature at home and abroad. Thesecond chapter explains the necessity of government regulation based on industrycharacteristics of quasi-public goods and natural monopoly of public transportindustry. The third chapter analyzes the current regulation methods on publictransport industry and has some inspiration in reform of regulation on publictransport industry compared with foreign typical modes of public transportregulation. Franchise operation is an ideal method to regulate public transportindustry. The fourth chapter introduces franchise operation summarizing currentproblems of china’s franchise operation and studies empirical cases of franchiseoperation in public transport industry in several cities compared with franchiseoperation in Hong Kong. This chapter provides useful suggestions to theestablishment of franchise operation system. The fifth chapter summarizes the wholearticle and provides ideas for china’s public transport regulation policy such as establishing an independent regulation agency, improving the access mechanism offranchise operation, improving franchise operation process, using reasonable meansof price regulation, etc.