| Since the global economic crisis happened in 2008,the economy in the world has not been able to have a good recovery performance.After that,China has suffered so much that the high level of unemployment threatens social stability and firms are facing with a crisis of bankruptcy.And then in order to revitalize the domestic economy,the government launched the "four trillion" plan.To this end,the Chinese government's "four trillion" investment plan promoted the construction of infrastructure and the growth of the output of steel,cement and coal.From 1999 to 2011,the growth rate of economic in China accounted for more than 50 percent rate of the growth of economic all over the world,and China has gradually become the largest or the most important trading partner.for the vast majority of countries in the world.Without a doubt,with the capacity increased,China has become the economic engine in the world.However,in pace with China becoming a country with strong production capacity,the problem of excess capacity in China is becoming more and more serious.Historically,scholars in the West have discussed the problem of excess capacity and they generally believed that the problem of excess capacity is cyclical.That is,the problem of excess capacity is the emergence of short-term phenomenon with the economic development of the law.Although,from the perspective of the development law of economic,capacity utilization will be changed certainly with the technical update,the development of social and changes in demand.For example,some fixed assets are very useful for the investment activities at that time,but as time went on,those fixed assets may be problematic due to outdated technology,and then becomes the excess capacity that need to be processed in the next period of time at last.However,compared to the Western developed countries,domestic scholars believe that the problem of excess capacity happened in China,in addition to this explanation can be used,there are other factors engraved with Chinese characteristics mark.First of all,China's central government for domestic industries to take inappropriate supportive planning,as well as local governments at all levels in order to enhance the level of local economic development to meet their own interests and then choose to follow blindly and excessive use of the central government's relevant policies,Which has a direct responsibility for China's serious overcapacity.China's central government from 1953 to 2016 issued a total of 13 "five-year plan",for dacades,each "five-year plan" plan will introduced some related policies about the development of a number of important pillars industry.And these related policies will not only point out the development direction of certain key industries,but also the investment plans of central government for certain industries.As a result of the central government's incentive policies and the supply of loose resources to the firms,the industries mentioned in the "five-year plan",even if they are currently in the new industry or have been neglected by local governments or firms,in a short period of time will continue to influx a lot of investment funds and projects.Also in our country,the central government decentralized its rights to local governments and development level of the local economic(GDP growth rate)is used as one of the main criteria for measuring local government performance and government officials' promotion.In order to promote local economic development,the local government will follow the central government's development plans and investment plans for each of the "five-year plan" for certain industries,as well as other key strategic policies of the central government.This makes it easy for some of the local government's investment projects to be easily accepted by the central government and will be easier to obtain bank loans and financial support.But because the central government promulgated the policy is for all parts of the country,so this makes the local government in order to make the greatest possible use of convenient conditions provided by the central government to achieve the purpose of improving performance and in a very short period of time focus on a limited number of field to invest.After that,it will most likely soon lead to the phenomenon of excess capacity happened in these industriesIn addition,the formation of a serious overcapacity problem may also be related to the firm's own internal business decision-making process and the results of investment.Specific responsibilities of firms can be reflected in the following aspects:Firstly,with the development of economic globalization,domestic firms face market competition is more intense than before.In order to win the corresponding competitive advantage,companies will choose to retain excess capacity.On the one hand,in order to cope with the crisis that may occur in the course of future operations,and on the other hand,to enhance the value of the supply chain itself,the bargaining power,the right to choose partners,and the barriers to entry in the market and so on;Secondly,in the period of economic transformation,since the market economy system is not perfect,some private firms will choose to establish political links with the government to use the informal relationship system to win their own advantages in financing,leasing and related policies.Finally,China's financial institutions have also had a corresponding negative impact on China's excess capacity.At present,the ownership of most of the large banks in China still belongs to the governments.Generally speaking,the solution to the financing problem often determines the development and destiny of a firm.Because the loan process of banks is more stringent requirement for the size of the firm and the value of the collateral,and large enterprises are tend to be more easily to have access to the financial support provided by banks.Therefore the ability to a large extent depends on the size of the firm to obtain bank loans and access to financial markets.In order to be able to obtain the support from the domestic bank in the most convenient way,private firms will tent to easily choose to expand the size and production capacity in order to make their own access to financing convenience,however,that often leads to the problem of excess capacity.For a long time,excess capacity has been restricting the healthy and rapid development of China's economy.However,since the economic crisis,the problem of excess capacity in our country has become more and more serious.The phenomenon of the relative economic downturn in our country seems to be related to the problem of serious excess capacity every time.For this reason,the Chinese government has also tried a lot of methods to solve the problem of serious excess capacity,but the overall effect of governance is always more and more serious,the capacity is still expanding very fast.Whether it is standing in the point of view the country,the industry or the perspective of each firm,understanding,analysis,to solve the excess capacity is an urgent problem.In order to provide the corresponding suggestions on the problem of excess capacity in China,this paper mainly analyzes the problem of excess capacity that happened in private firms in domestic manufacturing industry.And also in order to make the full text of the whole issue to consider more comprehensive,in the posterior part of the article from the two aspects of institutional environment and the firm to discuss the problem of excess capacity.As the previous analysis of the causes of excess capacity problems,the local governments have a strong impact on the generation of excess capacity.In fact,according to the previous research conducted by scholars on the relationship between local government and excess capacity described,we can know that the government mainly through the impact on the business investment,innovation,financing and other activities leaving the enterprise capacity utilization decline,which may cause excess capacity.Because our country is in a critical period of economic transformation and the government does play a strong role in regulating the whole society and economy.The regulations from the government will not only affect the development of state-owned firms,but also have an effect on private firms' business and investment activities.Private firms as one of the main participants in the market economy have a strong tendency to choose strategies that are suitable for their long-term development and enhance their performance.In fact,we can view from this tendency of the private firms' managers becoming NPC deputies,permanent council and actively participating in the relevant political activities and so on,because the manager is aware of the relationship between firms and the local government can help firms to make it easier for firms to obtain bank financing approval,the patent protection and so on.But this kind of government-enterprise relationship to bring the corresponding advantages for firms at the same time there are also disadvantages.On the one hand,government-enterprise relations will make managers tend to easily think that they have a strong human capital and that will let them become overconfidence,which will cause the firm make the wrong decision and even lead to excess capacity;the other hand,the local government in order to pursue the improvement of the level of local economic and the development of social,and will choose to make the loose policy to stimulate firms to expand their size and improve the employment rate.Therefore,this paper argues that there is a certain relationship between government-enterprise relationship and the problem of excess capacity.In addition,in order to describe in more detail the relationship between government-enterprise relationship and excess capacity,this paper argues that there is a non-linear "U" relationship between the government-enterprise relationship and excess capacity,according to the view put forward by scholars in the past.In fact,this hypothesis about the relationship between the government-enterprise relationship and excess capacity is validated in the empirical section of this paper.The specific content of the hypothesis is as follows:when the degree of closeness of the relationship between the firm and the government is less than a threshold,the relationship between the government and the firm is not conducive to improving the utilization of firm's capacity;However,when the degree of closeness of the relationship between the government and the firm is above a threshold,that is,the relationship between the firm and the government becomes very close,it is helpful for the firm to easily obtain the special resources that are important for the development of the firm and performance improvement.At this point,the government in the market are more likely play an intermediary role and that can help firms to establish a broader sales channels,and ultimately help firms to achieve the purpose of improving capacity utilization.In order to provide relevant advice about solving the problem of excess capacity to,this paper also based on the relationship between the government-enterprise relationship and excess capacity to explore whether the relationship between the government-enterprise relationship and excess capacity will be affected by the local economic growth rate and the board of directors.And the result of the empirical analysis shows that the non-linear "U" type relationship between the non-state-owned enterprises and the local government will be more significant in the period of poor local economic growth trend and low internal governance level.With the completion of this test,the paper concludes with the corresponding suggestions in the final analysis of the article and the corresponding empirical results hoping to help solve the problem of excess capacity in our country. |
PDF Full Text Request