The Influence Of Local Government Competition On Overcapacity In Strategic Emerging Industries

With the rapid development and convergence of science and technology in various fields,emerging industries are developing rapidly all over the world,becoming an important growth point of economic development in the future.The healthy development of China's strategic emerging industries is gradually becoming an important force in adjusting structure,transferring mode and improving people's livelihood.In the domestic economic transformation inherent power and international competition under the external pressure,strategic emerging industries directly promote economic development,and play a guiding role in other industries so as to indirectly promote the economic growth,leading the transformation of China's mode of production and consumption patterns,promoting and upgrading China's industrial structure and economic structure.However,in the early stage of strategic emerging industries in China,irrational phenomena such as excessive entry,redundant construction and excess production have occurred.In this paper,on the one hand,there are many literature about strategic emerging industry development status and development conditions from the qualitative point of view.On the other hand,there are lacks of the literature about analysis of local government competition strategic emerging industry capacity utilization from the perspective of quantitative.China is facing the East,central and western regions of the natural resources and economic bases,in the early stage of the development of strategic emerging industries,the local government will develop different decision-making stages have different influence in the industry.This paper from the perspective of local government competition,such as tax competition,infrastructure competition,foreign direct investment and land competition to discuss the measure of strategic emerging industry capacity utilization effect.The innovation of this paper mainly includes the following aspects:firstly,the paper discuss the strategic emerging industry capacity between eastern,central and western from the comparison of local government competition status in China,which is a new perspective for the study of the development of the industry;secondly,there are a large number of literature about strategic emerging industry,few scholars study the influences of capacity the utilization rate of strategic emerging industry from the perspective of local government competition;finally,put forward reasonable suggestions according to the current local government competition on the impact of strategic emerging industries and provides guidelines for it.Firstly,this paper reviews conditions and status of strategic emerging industry,subsidy behavior of the government to strategic emerging industries,expounds the impact of the local government competition,such as,tax competition,competition for land,Chinese scale competition and economic growth to the development of strategic emerging industry.Secondly,the measurement of the east,central,west in strategic emerging industry capacity utilization is made.Lastly,combined with each regional conditions and comprehensive advantages,discussing the effect of the tax,land,the foreign direct investment and infrastructure factors of the local government to strategic emerging industry capacity utilization.The empirical test results,include the following parts.Firstly,from a nationwide analysis,the strategic emerging industries in the eastern and central regions are mainly characterized by insufficient production capacity,and the western region is characterized by overcapacity.Secondly,from the analysis of the country,the lower local government tax competition,the higher average land price,the larger investment of local government infrastructure lead to reasonable allocation of resource elements in strategic emerging industries,so as to enhance the strategic emerging industry capacity utilization,alleviating the industry overcapacity phenomenon;foreign direct investment on the strategic the emerging industry capacity utilization has positive effect but the effect is very limited.Thirdly,from the perspective of regional development:the eastern region tax competition for strategic emerging industry capacity utilization is not obvious,the lower tax competition in central and western area,the more can promote the development of strategic emerging industries;the foreign direct investment has negative effects on strategic emerging industries production capacity in three areas;infrastructure construction promote eastern and western's strategic emerging industry capacity utilization,but not for the central area;land.utilization rate is proportional to the average price of the three regional and strategic emerging industry capacity,namely average land prices higher,more can restrain overcapacity the phenomenon,central region was the most significant.Local government competition has made different influence on strategic emerging industries.Taking reasonable means of competition based on the status quo to promote maximize production efficiency of strategic emerging industries,alleviating the unreasonable phenomenon of excess capacity so as to promote China's industrial structure transformation and economic growth.