Coordination Between Tobacco Resource Development and Regional Economy

Abstract

This paper studies the relationship between the development of tobacco resources and the coordination of regional economy under the background of tobacco monopoly. Methods: This paper takes the institutional change theory as the theoretical fulcrum and the cost-benefit analysis as the main line, the correlation between regional economy and the development of tobacco industry is compared. This paper expounds the evolution history and institutional characteristics of China's tobacco monopoly system, and analyzes the changes of production, supply and marketing relationship, institutional characteristics and benefit distribution of the tobacco industry in each period. After the theoretical and empirical analysis of the costs and benefits of China's tobacco monopoly system, this paper studies the role of tobacco resource development in promoting regional economy by comparing the costs and benefits of radical and gradual reform. Results: On the premise of retaining tobacco monopoly, we should take the separation of government and enterprises and the reform of tobacco fiscal and tax system as the breakthrough. This can change the tobacco industry from administrative monopoly to economic monopoly and form tobacco trust. The linkage mechanism of "tax, profit and price" should be established to protect the interests of tobacco farmers. A tobacco auction center shall be established and a third-party tobacco rating agency shall be guided. Conclusion: The net income of the new system is higher than that of the old system. The healthy development of tobacco industry can promote regional economy.