Effectiveness Of Industrial Policy

As one of the strategic emerging industry of China, solar photovoltaic industry is of great significance to change the energy structure and environmental protection, playing an important role in sustainable development and future livelihood. However, if there is no policy to support the industry, companies have great difficulty in overcoming obstacles of early stage. Chinese PV industry has experienced several ups and downs. In 2011, Europe and the United States launched several "double reverse" investigation to our PV industry, making the industry suffered heavy losses.From 2012, The Government introduced a number of industrial policy, which carefully planned market access standards, R & D support, financial markets guide and electricity price. After several years of recovery, China PV industry has gradually get rid of the last serious overcapacity and disorderly competition at present. Until 2015, China’s PV installed capacity ranked first in two consecutive years in the world. PV industry has a strong competitive edge. In the process, whether the Industrial Policy government introduced has already reached desired effect, remaining to be analyzed. Therefore, in this paper, theoretical research and empirical test have been taken to study the policy effectiveness and impact mechanism on industrial competitiveness. The results have a certain theoretical and practical significance in the evaluation of existing industrial policies and future policy direction.This paper summarizes the results of policy research for the photovoltaic industry in present stage, finding that when scholars analyze the policy effectiveness, there existing problems of single industry development evaluation standard and randomly choosing point of policy changes. Therefore, this paper consults Potter Diamond Model, introducing the concept of industrial competitiveness. On the basis of analyzing PV industry environmental competitiveness, industry chain and value chain competitiveness, evaluating overall development industry and discussing the role of policy factors. Then, through empirical model, the impact of policies on competitiveness at the enterprise level can be verified. This model uses entrepreneurship indicators and productivity indicators to characterize the level of competitiveness of enterprises, confirming that the year of 2012 was the turning point of photovoltaic industry policy through Zou Zhizhuang Test. In 2012, after the intense implementation of industrial policy, PV companies improved their business capability and capacity levels and enhance overall competitiveness. The promotion is achieved by increasing the level of the enterprise workforce and R & D investment. At last, according to results of this study, we propose to continually encourage technological innovation, improve the market access system and stimulate domestic demand for PV industry.