Economics of antitrust and regulation key research base, Shandong University has undertaken Ministry of Education Philosophy Social Science Research project”. The policy research of anti-administrative monopoly and the promotion of competition in transition economies” (item number 06JZD0015). Professor Yu Liangchun acts as the chief expert in this important project. In the past three years of study, the research group has done much research on some problems like formation, maintenance mechanism, existence and welfare of administrative monopoly on the basis of categories and definition. As a result, the analytical framework of ISCP has been proposed. Under this unified framework, they could measure the existence, the welfare consequences and its historical evolution process of administrative monopolies on the industry level and district-level, which would be able to deepen understanding of the process under the System Transition.
Firstly, the task force made a scientific definition of administrative monopoly’s connotation and extension. Then, a deep analysis of the causes and forms of administrative monopoly was done by the group.
Secondly, they proposed empirical analysis which was used to measure and distinguish administrative monopoly. They also established a complete theory and methodology and a set of relatively stable measure of index system. Through the identification of the domestic market in China, they grasped the dynamic evolution and development trends of administrative monopoly in the transition period. On the basis of theoretical analysis, they measured the loss of social welfare and efficiency of resource allocation from four aspects: micro-efficiency of resource allocation, industrial efficiency, macro-efficiency and social welfare.
Finally, their research advised to break the administrative monopolies and establish a unified national market which could provide ideas and supporting measures of anti-monopoly and promotion of competition for the transition period. It could also provide support to economic theory and methods for the implementation of relevant laws.