The impact of deregulation reform on the china's natural gas industry based on co-integration analysis

Abstract

China has implemented the oil and gas industry reforms in 1998, but there is few quantitative analysis on the performance of deregulation reform. We construct two econometric models - the profit model and the efficiency model, select 1986-2008 years data as a sample, use co-integration analysis including the structural breaks, and show that deregulation dummy variables have a significant impact for industry profits and efficiency through the unit root test to original time series, then confirmed that deregulation of China's oil and gas industry not only introduced the competition but also improved industrial performance. © 2012 Springer-Verlag GmbH Berlin Heidelberg.