Unlike the tolls in neighboring Florida and Georgia, Alabama toll roads and bridges are privately owned and operated. At the initial stage of reform and opening-up, Chinas economic development first encountered a severe shortage of infrastructure. J. T. Pastor and C. A. K. Lovell, A global malmquist productivity index, Economics Letters, vol. In particular, governmental loan-repayment highways have such characteristics as franchising, monopoly, and one highway by one company. Hence, this study concentrates on the relationship between economic performance, administrative monopoly, and scale efficiency with respect to toll highways, and explores how the China-specific administrative monopoly affects the transformation of toll highways from scale to efficiency. The results of the robustness test show that we can still obtain parameter estimation results that are highly consistent with those based on the reference after toll highway density (a proxy variable) is replaced. 60, no. More and more scholars realize that the root of improving the operational efficiency of infrastructure lies with the institution [10]. The user-pays principle recognizes that those responsible for the expenditure of scarce resources should bear at least part of the costs they impose; if not, there will be a tendency to over-utilization and hence over-provision The second principle, of competitive neutrality, argues that making the use of the trunk road network free will create a distorted traffic allocation away from railways to roads. The use of an administrative monopoly not only incurs transaction costs but also reaps corresponding revenue. Investment Moats, Fund or Withdraw Funds from Your Interactive Brokers Guide, All About Converting Currencies in Interactive Brokers, Buying and Selling Stocks, ETF with Interactive Brokers, Explaining Interactive Brokers Commission Structure Competitiveness, China Merchant Pacific 2011 sep 13 vickers, Dividend Stock Tracker which is updated nightly here, The Influence and Threat of Financial Influencers. The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. Annual traffic fines amount to 100 billion yuan ($15 billion). [4] thought that the poor operational efficiency is the main problem of the supply side of toll highway industry, and the development of toll highways should be transformed from scale expansion to quality and efficiency improvement. Its another strategy devised by the communist regime to siphon wealth from the public, says Cai Shenkun, a well-known Chinese economist and blogger. As a Premium user you get access to the detailed source references and background information about this statistic. and represent two sets of control variables, among which includes some provincial-level control variables: regional urbanization rate , i.e., urban population/total regional population, regional unemployment rate, , proportion of employed persons in the regional road transport industry , i.e., the employment of the regional road transport industry/the total urban employment population; includes some industrial-level control variables, such as the number of toll gates on toll roads, recorded as , road carrying capacity , i.e., natural logarithm of highway freight turnover, labor value level of highway industry, recorded as , i.e., average wages of transportation, storage, and post/average wages of regional cities and towns. The above data are mainly from the public database of Chinas National Bureau of Statistics, the Wind database, and provincial statistical yearbooks under the China Economic and Social Development Statistics Database. Yu [59] analyzed the problems in the management system of toll highways, which resulted in the economic inefficiency of highway operations; accordingly, Yu [59] proposed a management system and innovation strategy for highway operation. At this time, its effect is insufficient; therefore, the efficiency of the toll highway sector can be improved continuously by enhancing the administrative monopoly. Yet, the long-term profitability of toll-road operators isnt easy to judge. The transmission between efficiency and scale is not smooth, and thus, the economies of scale cannot achieve the desired effect. 3, pp. Aussie drivers have helped toll road owner Transurban Group more than double its profit to $468 million in the last financial year. C. Xu, The fundamental institutions of Chinas reforms and development, Journal of Economic Literature, vol. 683708, 2011. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Based on provincial panel data, this paper then discusses the relationship between toll highway scale and economic performance through system-generalized method of moments estimation and verifies the status quo of the transformation of toll highways from scale to efficiency. statistic alerts) please log in with your personal account. [15], Zhang et al. 13, no. According to recently released data by China's Ministry of Transportation, revenue from toll roads was 409. . As a Premium user you get access to background information and details about the release of this statistic. Y. Crozet and E. Bougna, Towards a liberalised European rail transport: analysing and modelling the impact of competition on productive efficiency, Research in Transportation Economics, vol. But can CMHP maintain its high dividend payouts if it makes more major acquisitions like Yongtaiwen? As a Premium user you get access to background information and details about the release of this statistic. It can be concluded that from the perspective of toll road property rights, the administrative monopoly characteristics of the industry will affect the scale of toll road into total factor productivity and scale efficiency. Although Chinas toll highways are world-renowned, they suffer from indisputable operational inefficiencies. October 28, 2021. The network DEA model is deep inside the decision-making unit in evaluating the subsystem, and the difficulty is to give weight to the initial investment [63]. We face big challenges to help the worlds poorest people and ensure that everyone sees benefits from economic growth. Creating Chinas National Trunk Highway System has been an outstanding national achievement. For investors, the deal appears to have been well worth the wait. They're safe, convenient and can get you where you want to be, sooner. Highway group companies or highway authorities set up branch offices or management offices, which are responsible for the operation management of specific highway sections. Since then, analysts have touted the possibility of CMHP gradually acquiring more toll roads from its parent. Learn more about how Statista can support your business. 146159, 2013. Some degree of support for cross-funding can also be justified by network benefits which arise from the fact that as the network is extended, the range of origins and destinations that can be effectively served is increased throughout the network, generating benefits on existing routes, and not just on the new sections. [57] analyzed and summarized the reform process of the management system of Chongqings toll highways and proposed a three-step strategy for the management system reform of Chongqings toll highways. And, the reasonable valuation at which the company acquired the highway signals strong support from CMG, he adds. As the reference of each period is the same frontier, the calculation obtained is a single Malmquist index: Among these, represents the input for period , and the output vector indicates the DEA efficiency value with the global leading edge as the reference plane. By end-2010, China had 65,055km of expressways. Before the administrative monopoly reaches the point of balance, its MR is greater than its MC. Z. Chang, Research on Efficiency Loss of Toll Road Industry from the Perspective of Administrative Monopoly, Changan University, Beijing, China, 2019. By the time of his death in 1958 at the age of 95, Albert was . It is also costly to Provinces in the imposition of premature reinstatement or replacement costs. Cai Shenkun is a well-known Chinese economist and blogger. Industry-level control variables: toll road management expense , toll road maintenance expense , and toll road toll station number .The proxy variable for administrative monopoly is the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways, and the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector; thus, the intersection terms are recorded as and, respectively, in Table 9. The remaining 20 percent was consumed by management, road and ancillary facilities expansion, taxes and other expenses. Guihuang expressway is a good asset. 93116, 2018. Rong [31] systematically analyzed the form of administrative monopoly in the railway industry after a series of reforms, the impact on transport efficiency and operation cost, and the regulations under the existing legal framework [31]. Among other African projects agreed under such partnerships, China is involved in toll roads in Mozambique and Uganda. X. L. You and S. H. Jia, Organizational redundancy: loss of efficiency or need for flexibility?, South China Journal of Economics, vol. Ministry of Transport of China. Currently, you are using a shared account. This outcome means that a significant increase in scale efficiency is an important reason for the improved efficiency of toll road operations. After overcoming a difficult and controversial beginning, Victoria's first private toll road has generated $5.78 billion in revenue since it opened in . When the administrative monopoly reaches the point of balance, its MR is less than its MC; at this time, its effect is excessive. Queensland's toll roads form an integrated network of tolled roads, bridges and tunnels that provides greater connectivity, efficiency and reliability across the greater Brisbane and Toowoomba areas. G. Zhou, An inevitable topic-accumulation and solution of highway construction debt, China Highway, vol. That pushed its gearing up from zero to 40%. Moody's Investors Service upgraded the nation's six major government-owned toll road operators from negative to stable in its November ratings, citing higher vehicle volumes and resumption of tolls. The research on administrative monopoly and economic performance has gradually expanded from qualitative analysis to quantitative analysis to empirical testing of specific impact mechanisms. The GMM estimates reported in column (IV), (V), and (VI) are similar to that in column (I) to (III). Since there are no toll roads in general in Hainan and Tibet, after removing the Hainan, Tibet, Hong Kong, Macao, and Taiwan regions, this paper selects the remaining 29 provinces as research samples. The expressway stretches 138km through Zhejiang provinces Wenzhou municipality to Fujian province. 10761151, 2011. However, whether financed through Provincial debt and equity, or through more private finance, the revenue from road tolling will remain critical for network construction for the foreseeable future. At the sector level, two proxy variables are used. ", Ministry of Transport of China, Percentage of toll roads in the overall road mileage in China from 2014 to 2020 Statista, https://www.statista.com/statistics/759636/china-percentage-of-toll-roads/ (last visited January 18, 2023), Percentage of toll roads in the overall road mileage in China from 2014 to 2020 [Graph], Ministry of Transport of China, October 28, 2021. The second is the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector, since cumulative capital funds are completely sourced from local governments and are highly representative of administrative monopoly. Are non-toll road loans, and even urban road loans, also included in the toll road repayments? Over a short period of 20years, the scale of Chinas toll highways expanded to rank first globally. E-470 Toll Road is owned and maintained by the E-470 Public Highway Authority Pikes Peak Highway is owned and maintained by the city of Colorado springs. However, the positive effect is weakened by fiscal decentralization. China has the highest percentage of toll roads in the world. 333, no. 2630, 2013. In the field of toll highways, a wide range of studies on administrative monopoly and economic performance mainly focuses on the form of administrative monopoly in the toll highway industry and the influence mechanism of administrative monopoly on performance. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. Helped toll road that linked Shanghai to Jiading, a satellite town specific. Although Chinas toll highways expanded to rank first globally franchising, monopoly, and,! Appears to have been well worth the wait scale efficiency is an important for! 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