Abstract
As a unique form of China's transition economy, the impact of administrative monopoly on economic development can not be ignored. Analyzing the data from 1990 to 2015, this paper investigates the relationship between administrative monopoly and economic development based on Vector Error Correction Model (VEC)model. The results show that there is a long - term equilibrium relationship between administrative monopoly and economic development. In the long run, the administrative monopoly has obvious obstructive effect on economic development. The hardest part, as well as the emphasis in China's economic reform will be how to separate the government from state-owned enterprises and eliminate administrative monopoly.
Highlights
With a special economic system, the socialist market economy, administrative monopoly seems to be unavoidable in China
The corresponding differential sequences of ADF values are less than the critical value, indicating that the differential sequence of variables is stationary, which can determine that the six variables are first-order single integer
The first method is generally used to test the relationship between two variables, and the second method is more suitable for the relationship among multiple variables to test
Summary
With a special economic system, the socialist market economy, administrative monopoly seems to be unavoidable in China. Domestic and foreign scholars have made a lot of meaningful research on the impact of administrative monopoly on economic growth. The scope of these literatures mainly focuses on three aspects: Firstly, the direct influence on economic growth made by administrative monopoly, including regional administrative monopoly (Lu Ming, Chen Zhao, 2009) and the impact of industrial administrative monopoly on economic growth (Yu Liangchun, Zhang Wei, 2010). Other related researches examine the impact of institutional factors on economic growth from the aspects of marketization(Jin Tao, 2007), property rights system(Zheng Ruogu, 2010) [15] and economic openness(Pan Xiangdong, 2005)
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