Legal Economics Perspectives on Hainan Island Duty Free “Sets of Generation Purchase” Study on Long-term Mechanism for Comprehensive Management of Smuggling

Abstract

Legal economics suggests that decision makers are rational, and this includes lawbreakers. The implementation of Hainan
free trade port off -island duty-free policy has played a positive role in the economic development of Hainan and the reform and development
of the country, but due to the existence of the current law on “set of generation purchase” smuggling chain in the defi nition of the main
culprits is not clear enough, the severity of the law and the lack of certainty in the punishment, the local economic development is relatively
backward, resulting in the existence of villagers with a strong incentive to “set of generation purchase” smuggling behavior from time to
time. For reasons such as “set generation purchase” smuggling motivation, Hainan island duty-free “set generation purchase” smuggling
behavior occurs from time to time. In order to make the “set of generation purchase” smuggling comprehensive management more eff ective
and long-lasting, the author combined with the relevant research, the use of legal economics in the cost-benefi t model of the violation of
law, analyze Hainan off-island duty-free “set of generation purchase” smuggling subject of the illegal cost and benefit, in order to find
the cost of violation of the law. In order to fi nd out the illegal cost - benefi t ratio imbalance, “set of generation purchase” case repeatedly
prohibited reasons, and put forward by reducing the expected illegal benefi t, improve the expected opportunity cost and punishment cost to
change the “set of generation purchase” smuggling It also proposes to change the cost-benefi t structure of the “water customers” by reducing
the expected illegal benefi t and increasing the expected opportunity cost and penalty cost, and to establish a long-term mechanism for the
comprehensive management of the smuggling of the “set of substitute purchases” of Hainan’s off -island duty-free, so as to contribute to the
healthy development of Hainan’s free-trade harbor.