A Study On The Productivity Effect Of Excess Capacity Export In China

In 2008,the global financial crisis leads to the third round of large-scale excess capacity crises in China.As of now,resolving the excess capacity remains an important challenge that the government faces in seeking economic and social development.It is necessary to know that the Chinese government fully recognizes the importance and urgency of resolving the contradiction of overcapacity.However,in order to resolve overcapacity,a series of policies and measures to "eliminate overcapacity" have been successively issued in the past few years.On the one hand,the Chinese government has made efforts to develop domestic market demand,adjust and optimize the industrial structure,eliminate and withdraw backward production capacity,etc.On the other hand,actively expand the space for external development,support the transfer of production capacity overseas,and use the opportunity of the "the belt and road initiative" initiative to create space for the output of excess production capacity and encourage advantageous enterprises to "go out" in various ways.One of them is to transfer excess production capacity to countries and regions in need through export.Practice has also proved that various policies and measures of the Chinese government have played a key role in resolving overcapacity.However,from the perspective of micro-enterprises,in order to relieve the pressure of excess production capacity through export trade,it is also necessary to consider the impact of export on the production and operation performance of enterprises.However,for enterprises with excess capacity,the effect of export productivity is not clear at present.So,in the real economy,weather there is an exported productivity effect in the enterprises with excess capacity? For this reason,this paper studies.Then,in order to answer this question,firstly,based on the survey data of China's micro-enterprises provided by the World Bank's enterprise survey database,this paper examines the overcapacity status of Chinese enterprises and their export and productivity status in terms of enterprise,industry and region dimensions,and makes a systematic comparison with three types of enterprises,namely,normal industry,lack of capacity and insufficient capacity.Secondly,theoretical analysis is carried out on the mechanism of overcapacity affecting enterprise productivity,the internal mechanism of overcapacity export productivity effect from the perspective of export productivity effect and the perspective of export learning effect respectively:(1)On the basis of LP method calculation and investigation of TFP of overcapacity enterprises,the mechanism of overcapacity affecting enterprise TFP is investigated based on capital constraints and economies of scale.(2)Based on the perspective of export capacity effect,this paper investigates the productivity effect of enterprises' export excess capacity,and theoretically analyzes the export capacity effect of enterprises with excess capacity through direct path and indirect path.(3)Based on the perspective of export learning effect,the productivity effect of export excess capacity of Chinese enterprises is investigated.Through theoretical analysis of the export productivity effect of enterprises and the overall productivity effect of export of enterprises with excess capacity under the path of capacity utilization rate.Third,through the construction of an empirical model,on the basis of overcoming the endogeneity,the conclusions and inferences of the above theoretical analysis are empirically tested one by one.At the same time,the reliability of the empirical results is tested from multiple dimensions,and the specific performance of regional heterogeneity is further compared and analyzed.Finally,combined with the research conclusions,this paper puts forward the micro-level policy recommendations of overcapacity enterprises in promoting exports,resolving overcapacity and improving productivity.The main conclusions of this paper are:(1)After exploring the current status of Chinese enterprises' overcapacity and their export and productivity status,the conclusions are:(1)The excess capacity of enterprises shows strong heterogeneity in the dimensions of enterprises,industries and regions.From the perspective of enterprises: the excess capacity of domestic-funded enterprises are greater than those of foreign-funded enterprises;that of state-owned enterprises is larger than that of private-owned enterprises;and the enterprise is smaller,the degree and scope of excess capacity is greater.From the perspective of industries,labor-intensive industries have more excess capacity;while the capital-and tech-intensive enterprises have less excess capacity.From the regional perspective,regions and cities with higher levels of economic development have a relatively smaller excess capacity.(2)The enterprises with excess capacity have lower exported intensity and exported willingness.Based on the investigation of the exported strength of enterprises with different capacity and the proportion of exported enterprises based on the dimensions of enterprises,industries and regions,we found a basically consistent rule that the higher the capacity grouping level,the enterprises have the greater exported intensity and exported willingness.In addition,the survey based on the regional dimensions also found that the regional economic developing level is higher,the average exported intensity of enterprises and the proportion of exporting enterprises are higher.(3)The static level shows the fact that the higher the capacity grouping level,the higher the TFP level.Whether it's the general level or the different types of enterprises,regions or industries level,most of them present the following characteristics: the average TFP level of enterprises with insufficient capacity is the highest;followed by those with a shortage of capacity and normal capacity;and those with the lowest TFP levels are the enterprises with excess capacity,indicating that there is a positive correlation between capacity utilization and the TFP of the enterprise,which means that the excess capacity may have a negative effect on the TFP of the enterprise.(2)The excess capacity has a remarkable negative effect on the productivity of enterprises.The theoretical analysis and empirical study show that the improvement of capacity utilization has an obviously promotion effect on the TFP of the enterprise.After that,based on the investigation of the sub-samples at the enterprise,region and industry level,most of them have also obtained the robust conclusion of significant negative impact.This conclusion provides empirical evidence for the characteristic facts presented at the static level.(3)The productivity effect of exporting the excess capacity obviously exists from the perspective of effect of exporting capacity.In general,the increase in the export intensity of enterprises has a positive effect on the rate of capacity utilization,that is,export trade can resolve the excess capacity.The sub-sample survey found that because of the higher dependence on the external demand and capacity utilization in the prosperous coastal areas and their differences in trade structure and trade patterns with the undeveloped inland areas,resulted in the elimination of the excess capacity of exported enterprises only exists in undeveloped inland areas,while in prosperous coastal areas,the export trade to resolve excess capacity is not significant.(4)The productivity effect of exporting excess capacity also exists in the perspective of effect of learning by exporting.The export trade of enterprises can improve their capacity utilization through direct and indirect routes,and the improvement of capacity utilization can break through capital constraints,increase working capital,and make efficient use of labor force and machinery and equipment to realize economies of scale,thus bringing about productivity improvement.A further sub-sample study found that the promotion effect of export trade on enterprise productivity through capacity utilization pathways is significant in many types of enterprises,industries and regions.(5)the results of mathematical and empirical analysis of samples of enterprises with excess capacity show that the increase of export strength of enterprises with excess capacity can significantly improve their TFP level,indicating the productivity effect of export exists on enterprises with excess capacity.Based on the above conclusions,this paper puts forward three policy suggestions: first,in promoting the export of overcapacity enterprises: The government should create a fair and just overseas business environment,to closely combine the export of overcapacity with the construction of "the belt and road initiative",and to strive for a fair market economy status for Chinese export enterprises;Formulate active financial,fiscal and taxation policies,etc.The second is in resolving excess capacity: The government should perfecting and optimizing the market entry and exit mechanism of enterprises;and avoid direct administrative intervention to enterprises,etc.The third is to improve the productivity of overcapacity enterprises: the government should change the transportation mode of policy subsidies;and optimize the distribution of enterprise scale and promote the transformation and upgrading of industrial structure.The innovations of this paper are as follows: Firstly,the research perspective is micronized from the existing middle level Industry perspective to the micro level corporate perspective.Secondly,the research system of overcapacity and its governance is extended to the productivity of enterprises.By adopting a qualitative analysis method and a mathematical economic analysis method,this study clarified the internal mechanism of the export activities of overcapacity enterprises affecting their productivity through the path of capacity utilization.Then adopting the econometric method,it was found that enterprises engaged in export activities can eliminate excess capacity,but there is heterogeneity in the regional dimension,and can improve the productivity of enterprises while eliminating excess capacity.Finally,the study reviewed the export productivity effects according the characteristics of overcapacity enterprises.Using mathematical and econometric models,it is found that overcapacity enterprises engaged in export activities can promote productivity improvement through export learning effects.