Research On Measurement,Causes And Countermeasure Of Excess Production Capacity Of Zhejiang Manufacturing Industries

The excess production capacity refers to the output capacity which cannot be effectively realized exceeds the effective demand, if the actual output is equal to the effective demand, the excess production capacity performs as the potential production capacity of one certain industry exceeds the actual output capacity. Short-term unbalanced of supply and demand is a kind of normal market economic cyclical operation, Long-term excess production capacity will lead to the disordered market order and industrial chain, thus brings serious harm to the economic operation. In recent years, the government and the academic circle had attached importance to the problem of excess production capacity, management and suppression of excess capacity has become the focus point in government departments’work of readjustment of economic structure. Zhejiang, as a big manufacturing province, whether there is excess manufacturing capacity and the measurement on excess production capacity, analyze the features of industries’capacity utilization rate level of heavy industry and light industry fields respectively, explore the underlying reasons of excess production capacity, put forward reference suggestions of governance excess manufacturing capacity for government, has certain theoretical and realistic meaning.The paper following the research ideas of’Define the concept analyze the situation-evaluation of efficiency-analyze the reasons propose the solution’, and based on production, cost theory and market structure theory in microeconomics, elaborate the formation mechanism of excess production capacity, make use of cost function model and the Generalized Method of Moments of Panel model to measure the capacity utilization rate of twenty-eight industries of Zhejiarig province from2003to2010, the measurement shows that Raw Chemical Materials and Chemical Products, Medical and Pharmaceutical Products, Rubber Products, Nonmetal Mineral Products which belongs to heavy industry field and Papermaking and Paper Products, Printing and Record Medium Reproduction which belongs to light industry field exist serious excess production capacity problem, then combines the measurement result to analyse the status, features and trend, the result shows that the capacity utility rate of heavy industries and light industries of Zhejiang appeared different features, most of change of industries’ capacity utility are coincide with the economic cyclical fluctuation, the fluctuation of excess industries’capacity utilization rate is the same with the fixed asset investment trends, On this basis, the paper delves into the excess cause of Zhejiang manufacturing industries from four aspects, and put forward the corresponding policy recommendations.This whole thesis could be divided into three sections, of which the first one is introduction, including the background, research meaning, literature reviews and presenting the structure, main ideas of the article and the possible innovation; the second is about elaborating excess production capacity problem, based on the cost function and construct index system to measure the production capacity utility, make use of Generalized Method of Moments of Panel model to measure the capacity utilization rate of twenty-eight industries of Zhejiang province from2003to2010, combine with the economic situation to analyze the measure result of CU; the third section delves into the excess cause of Zhejiang manufacturing industries from the traditional path dependence, Zhejiang investment dilemma, open economy background and system factors, and put forward the corresponding policy recommendations.