Proceedings of the 2014 International Conference on Global Economy, Commerce and Service Science

Over-Investment & Regulatory Capture in China’s Transportation Industry

Authors
Junlin Chen, Qian Shan
Corresponding Author
Junlin Chen
Available Online January 2014.
DOI
https://doi.org/10.2991/gecss-14.2014.41How to use a DOI?
Keywords
transport network, over-investment, transfer barriers, regulatory cature
Abstract
To investigate the reason why consumers transfer from one transport network to another one is inconvenient in China while China has invested much in transportation infrastructure and suffer in conflict on its over-investment growth path, we considered the impact of infrastructure operators’ rent-seeking activities from asymmetrical information and cadres’ rank-order tournaments. We extended the framework of traditional economy growth theory by involving the mechanism between natural monopoly industries’ investment and regulation method, and concluded that the transfer barriers and regulatory capture emerges from collude between transport operators and cadres for seeking superiors government’ subsidies. The main solution is to minimize the opportunity of hidden cost information by regulatory agency reform and private operators introducing.
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Proceedings
2014 International Conference on Global Economy, Commerce and Service Science (GECSS-14)
Part of series
Advances in Intelligent Systems Research
Publication Date
January 2014
ISBN
978-90-78677-96-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/gecss-14.2014.41How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Junlin Chen
AU  - Qian Shan
PY  - 2014/01
DA  - 2014/01
TI  - Over-Investment & Regulatory Capture in China’s Transportation Industry
BT  - 2014 International Conference on Global Economy, Commerce and Service Science (GECSS-14)
PB  - Atlantis Press
SN  - 1951-6851
UR  - https://doi.org/10.2991/gecss-14.2014.41
DO  - https://doi.org/10.2991/gecss-14.2014.41
ID  - Chen2014/01
ER  -