The Study Of The Local Administrative Monopoly,Monopoly Regulation And Regional Economic Growth

In nearly forty years Chinese implementation of reform and opening which began in 1987 promoted Chinese comprehensive national strength to develop in a huge level.In this process,the Chinese government,especially the provincial government,has made an important contribution to Chinese economic development.However,the local governments restrict and impede the order of economic market through using their public power so that they could prevent local funds to be shared by the external government and enterprises.At the same time,officials of the local governments could be promoted in the competition.They set up various administrative monopoly barriers to control the legitimate external competitors to promote local economic growth.But there is a problem.The local administrative monopoly system can not improve the effectiveness of local government fundamentally.Employment and government revenue will be reduced if economic growth can not be the foundation.So we hope to find a reasonable answer to this question by studying the relationship between the local administrative monopoly and economic growth.This article uses both the theoretical analysis and the empirical analysis and study the relationship between the local administrative monopoly and economic growth based on Chinese provincial panel data.Then we come to the conclusion based on the data from 1985 to 2006.The relationship between local monopoly and local economic growth is inverted U.In most areas,the local monopoly promote the local economic growth.The local government can establish local administrative monopoly barriers through using the local administrative power to limit the competition of interests between the external and to local.However,in the long term,the local administrative monopoly gradually evolved into various barriers to entry and technical barriers to trade and market barriers and so on with the development of Chinese economy,which damage the market integration and the rational allocation of resources.A lot of duplication,overcapacity and waste of resources cause losses of the long-term economic development and losses of economic effect.In this paper,through the establishment of model,quantitative calculation,describe and analyze the influence of local monopoly on regional economic development.This is the innovation of this paper.This paper mainly includes four parts.In the first part,I introduce the theory of the local administrative monopoly and economic growth.And I analysis the condition the conception the feature the origin and the influence of local monopoly on regional economic development.The second part is the empirical part,mainly measure the influence of local monopoly on regional economic development through the establishment of model.The third part is the monopoly limit analysis,analysis the status and purpose of the study on the monopoly regulation based on the theory of monopoly regulation.The last part is the conclusion and policy recommendations,the main contents of this paper summarized,and put forward the policy recommendations of the local administrative monopoly regulation.