The Influence of Administrative Monopoly on Economic Development——An Empirical Study Based on Vector Error Correction Model
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.