Study On China's Steel Industry Integration Under The Binding Of Resource And Environment

Since 1980s in the 20th century, especially in the new century, the domestic steel industry develops with a transnormal scale, after the production of rude steel exceeded 100 million tons in 1996, it quadrupled in ten years, which was 490 million tons in 2007, and accounted for more than 1/3 of total world steel production. Because the extensive development mode is not completely changed , such problems as overinvestment,superfluous low-level production power,low industry concentration,scattered industry layout are still prominent, the resource and energy consuming and environment pollution are serious, so the steel industry is first and foremost one of those main industries that is up to the macro regulation of our country.The dissertation takes Scientific Outlook on Development as a guide, uses such disciplines as Industrial economics,regional economics,strategy management and institutional economics as a cross-advantage, and uses for reference and absorbs related domestic and overseas research result, summarizes and thinks over the practice of domestic steel industry, through international comparison,theoretic deduction and empirical analysis, systematically and deeply explores the development and integration of steel industry under the binding of resource and energy in an industry angle of view, which provides an idea for transformation of development mode and realization of sustained development in domestic steel industry, and offers reference for the adjustment of high resource consumption and high pollution industry, provides evidence and suggestion for the government's policy-making, and furthers the research depth and width of industry integration theory.The dissertation takes the binding of resource and environment confronted by steel industry as a fundamental condition, takes the development mode transformation of steel industry as a target, deepens the discussion in three latitudes of industry organization integration,chain integration and spacial integration, and analyses the respective positioning and function of the market and the government in the steel industry integration. As an important result, the dissertation constructs a logic analysis framework as follows: the binding of resource and environment transformation of industry development mode integration of steel industry scientific positioning of the market and the government.This dissertation includes eight chapters as follows:Chapterâ… Preface. This part mainly explains the reason why I choose the subject, and concisely introduces the signification,content and analysis framework,research method and the innovation of the dissertation.Chapterâ…¡Literature summarization on industry integration. This chapter cards and summarizes the overseas and domestic existing research on industry integration, which mainly includes not only the relative discussion on industry integration in early classic theory of Adam Smith and Karl Marx, but also the viewpoints in New Institutional Economy by Coase and Williamson. The empirical research conclusion of some western scholar is covered as well as the domestic theoretic research on this topic in recent years.Chapterâ…¢The binding of resource and environment confronted by the steel industry. This chapter briefly reviews the development of the steel industry in our country, and explores the evolving rules of steel industry in the industrialization process. After summarizing the total resource-binding condition as well as the energy consumption and the environmental cost, this part emphasizes the analysis of the resource-sustaining ability and the binding of energy consumption and environment of domestic steel industry with a plenty of full and accurate data, in particular this part offers a calm and in-depth thinking over the increasingly rising dependence degree of iron ore import and the steel export tide in recent years.Chapterâ…£Development mode transformation and integration of steel industry. In comparing the increase mode transformation with the development mode transformation, we deem that development mode transformation is not opposite to increase mode transformation, but the expanding and deepening of the latter. After that, this part analyses the extensive characteristic of the steel industry in our country, and demonstrates in six aspects that the industry integration is an effective way of transforming the development mode of steel industry, especially in that industry integration can accelerate the technology innovation of steel industry.Chapterâ…´Organization integration of steel industry. This part comments on the nowadays organization condition of the steel industry, in particular points out the anti-concentration trend and uneconomical scaled feature of the steel industry in our country. Further this part summarizes the course and incentive of organization integration of the world steel industry, which enlights the domestic steel industry organization integration. Also this part demonstrates the industry life stage that domestic steel industry lies in and the difficult problems caused by it, and put forward six incentives of domestic steel industry integration, summarizes five integration mode through empirical study. Finally this part takes an insight into the integration with the price game on international iron ore.Chapterâ…µIndustry chain integration of steel industry. The dominating ability of upstream resources and market control power are two shortcomings of domestic steel industry. In this part I put forward the viewpoint of constructing harmoniously-developing industry chain through forward and backward integration of steel industry, systemically analyse and totally design the industry integration that is based on cycle economy. At last I demonstrate that industry chain integration is an effective way of enhancing the competitive advantage of steel companies.Chapterâ…¶Spacial integration of steel industry. This part summarizes the industry layout theory and emphasizes the innovation of industry layout theory directed by Scientific Outlook on Development. On the basis of the conclusion to the feature of domestic steel industry spacial layout, in this part I bring forward the idea of the spacial integration. The relative slow progress of spacial integration, especially the cross-region integration, is directly due to the behavior of local government , accordingly this chapter analyses the behavior of local government in the cross-region integration of steel industry.Chapterâ…·Market vs government in the process of the steel industry integration. Market mechanism should play the foundational role in the steel and iron industry integration . Grounded on the resource binding and the negative externality of steel industry, I demonstrate the rationality that the government pushes forward the steel industry integration. The capital market offers a convenient,efficient and low-cost innovation instrument, the regulation of the policy offers proper environment for the steel industry integration. Also, I demonstrate how the market and the government should respectively position themselves and divide the work in the cross-region steel industry integration.There are such innovative viewpoints as follows in this dissertation:1. This dissertation constructs the theoretical analysis framework of industry integration bounded by the binding of resource and environment.Taking the resource and environmental restriction as the fundamental condition of the whole text, this dissertation deeply analyses the typical representative of high energy-consuming and high pollution-----steel industry integration and the way to realizes the development mode transformation, and constructs the theoretical analysis framework of industry integration under the binding of resource and environment. Existing literatures mainly treat industry integration as a strategic behavior of the company, and the analysis was done in the angle of business strategy. On the basis of reasonably absorbing the theoretic substance of strategy management and the pectination of existing industry integration theory, this dissertation explores the industry integration in the industry angle of view , still puts forward three organic part of steel industry integration, including industry organization integration,industry chain integration,industry spacial integration ,on the basis of which the research is furthered so that the industry integration theory is enriched and developed.2. Demonstration on the relation among industry degree of concentration,industry integration and industry life cycle stageThis dissertation analyses the specific feature of domestic steel industry in the growth stage of industry life cycle, and points out that the trend of industry concentration and deconcentration coexist, but the latter is dominant, which leads to the obvious decrease of steel industry in concentration degree. Also, the dissertation demonstrates the relation between the stage of industry life cycle and the active degree and difficulty degree of industry integration, and puts forward the difficult problems confronted by steel industry integration during the rapid progress of steel industry: on the one hand, the speeding of industrialization, especially heavy industrialization, causes the increasing domestic demand, while the integration between companies is in lack of pressure and incentive , the competitive rules of"the superior survives and the inferior drops out"doe not play an substantial role yet in the growing stage of domestic steel industry; on the other hand, owing to the demand of raising the operation efficiency of steel industry, especially owing to the strengthening binding of resource and environment, it is necessary to enforce the integration to raise the industry concentration degree. Accordingly, this dissertation points out the formidability of industry integration in the growth stage of the industry life cycle, thus it can be inferred that the steel industry integration needs not only the integration power of the companies in the market, but also the driving power of the government.3. The driving power model of domestic steel industry integrationThough comparable analysis, this dissertation holds that the driving power of steel industry integration mainly includes competitive market pressure bounded by demand restriction and the inner drive for scaled economy and market control power of the steel companies, so the depression period is often the active time for industry integration. The operational environment of domestic steel industry differs from that of western developed countries, so the driving power of steel industry integration also differs. While under the circumstances that domestic steel industry is in growth stage and confronted with the binding of resource and environment as well as the request for speeding the transfer of economic development mode, the driving power of steel industry integration comes not only from survival competition under market demand restriction and inner expansion impulse of the companies, but rather from resource restriction,conserving energy and reducing emissions,market encroachment of foreign capital,superfluous production power,low concentration degree,industry policy , and so on.4.This dissertation holds that with the increasingly strengthened resource and environmental restriction, the domestic steel industry integration should be operated under the"double-wheel drive"mode, so"market operation plus government's impetus"is a proper integration mode.According to resource restriction and the negative externality of steel industry, this dissertation demonstrates the reason that the government promotes the industry integration, and points out that with the incomplete market and immature market environments of industry integration, the industry integration and adjustment of such high energy-consuming and high pollution industries as steel industry will last too long a cycle and will be accompanied with continuous waste of resource and serious pollution of the environments if we uniquely rely on the market mechanism of"the superior survives and the inferior drops out"to realize the industry integration. According to the requirements of Scientific Outlook on Development, and with the binding of resource and environment, it is not only reasonable but also necessary for the government to promote the industry integration. Further, this dissertation discusses how the market and the government should respectively position themselves and divide the work with the case of Baoshan company integrating August 1st company, and maintain the steel industry integration, especially the cross-region integration should integrate the power of the market and the government, take into account each party's benefit,"market operation plus government's impetus"is a proper integration mode.5.Steel industry chain integration based on cycle economyThis dissertation compares the industry chain of cycle economy with the ordinary industry chain, and designs the steel industry integration path based on cycle economy. The integration idea based on cycle economy is to further expand the function of steel production procedure, so that the production procedure includes not only the function of producing steel product, but also the function of energy transforming,bulk castoff disposal and raw materials provision for relative industry, and imitate the substance cycle manner of natural ecology to layout production system, develop deep product process ,extend the product chain and expand circular use of substance to realize the upper,middle and lower layer cycle of substance and energy.6.This dissertation Discussed systematically Industry integration is an effective path to transform the economic development modeIndustry integration is an effective path to transform the economic development mode, while transformation of economic development mode is the target and internal drive of industry integration. This dissertation demonstrates in detail that the industry integration is an important way of transforming the development mode of steel industry in that : industry integration helps alleviate the contradiction of superfluous production power, conserve energy and reduce emissions;industry integration helps effectively make use of limited resources by scaled economy; industry integration helps promote technology innovation to upgrade the steel industry; industry integration brings about relative stability and sustainability of industry operation, and helps reduce the waste of resources.7.This dissertation demonstrates that the development mode of steel industry should mainly be based on internal market demand, and calmly meditate on the export tide of steel industry in recent years in an resource an environment-based angle.In recent years the export of steel product is increasing in a large scale, which accounted for 10% of the total steel production, aiming at the situation , this dissertation calmly analyses in the angle of resource and environment, and draws a conclusion that although a proper export volume is completely necessary, the bulk of steel export causes"internal and external hardship": it adds to the international trade friction, and objectively cause the risk of suffering from acute fluctuation impact of international steel market; In the meantime, the large amount of export amounts to output of a large number of precious resources at the cost of pollution which adds to the resource and environmental pressure, and does not fit for requirement of the Scientific Outlook of Development .Besides, the dissertation points out that the low production cost of steel industry and comparable advantage of export price is at the cost of twisted resource and energy cost,the externality of environmental conservation and extrusion of labor salary. To balance the resource and energy supply,sustaining ability of environment with the development of steel industry, the development of steel industry should aim at meeting the internal demand, accordingly the purpose of import and export of steel product is to adjust the demand of different variety.Owing to the limitation of research ability and instrument, the theoretic analysis in industry integration is not intensive enough, still the dissertation lacks econometrics model, and does not offer a perfect suggestion and specific measures. I will complement and perfect it in the future research.