2008China Industrial EconomyRequires access

Structural Barriers of the Private Economy’s Entry into Air Transport Industry——Perspective of Institutional Interaction

You Wen-cheng

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Abstract

This paper has built an entry barrier model based on institutional framework to research air transport industry.Our study finds that substitute relations dominate the structural barriers,in which the internal-institution entry barriers of loose layer formed by social customs and ethics substitute the external-institution entry barriers formed by laws and policies of civil aviation,anti-monopoly law,administrative law and administrative procedure law,simultaneity the latter substitute the internal-institution entry barriers of core layer.Complementary relations follow with internal-institution entry barriers of close layer formed by association and media complementing the external-institution barriers,while the latter complement the social rules reigned by man and law.Neutral relations weight least in the structural barriers.The paper believes that we should attach importance to substitute and complementary relations between entry barriers,seek ways to reduce barriers through institutional combination and conduction,as well as right order of reform.

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What this paper is about

This paper has built an entry barrier model based on institutional framework to research air transport industry.Our study finds that substitute relations dominate the structural barriers,in which the internal-institution entry barriers of loose layer formed by social customs and ethics substitute the external-institution entry barriers formed by laws and policies of civil aviation,anti-monopoly law,administrative law and administrative procedure law,simultaneity the latter substitute the internal-institution entry barriers of core layer.Complementary relations follow with internal-institution entry barriers of close layer formed by association and media complementing the external-institution barriers,while the latter complement the social rules reigned by man and law.Neutral relations weight least in the structural barriers.The paper believes that we should attach importance to substitute and complementary relations between entry barriers,seek ways to reduce barriers through institutional combination and conduction,as well as right order of reform.

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Available abstract

This paper has built an entry barrier model based on institutional framework to research air transport industry.Our study finds that substitute relations dominate the structural barriers,in which the internal-institution entry barriers of loose layer formed by social customs and ethics substitute the external-institution entry barriers formed by laws and policies of civil aviation,anti-monopoly law,administrative law and administrative procedure law,simultaneity the latter substitute the internal-institution entry barriers of core layer.Complementary relations follow with internal-institution entry barriers of close layer formed by association and media complementing the external-institution barriers,while the latter complement the social rules reigned by man and law.Neutral relations weight least in the structural barriers.The paper believes that we should attach importance to substitute and complementary relations between entry barriers,seek ways to reduce barriers through institutional combination and conduction,as well as right order of reform.

Key concepts: Barriers to entry, Institution, Air transport, Order (exchange), Monopoly, Business, Perspective (graphical), Law and economics

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