A Research On The Effects Of Government Regulation And Factor Distortion On Strategic Emerging Industrial Overcapacity

Over capacity is one of the most important macroeconomic risk in China which has become a common consensus,with the gradual deepen of the fundamental role of the market in the allocation of resources,in the planned economy period,China's industrial sectory has envolved from shortage to excess capacity,as well as presents the increasing trends from basic consumer goods,and broke out in several areas of the economy.The massive over capacity have outbreak three times,how to avoid the waste of resources effectively,realize the optimize configuration,dissolve excess capacity reasonable,guide the rational development of the market is the key factors which can make our country realize the take off on economy.Our country has raised this problem in a strategic height.From the current situation of researches:on the one hand most studies about over capacity research from single perspective,on the other hand most researches belong qualitative analysis.Aiming at government rules and regulation how to influence over capacity;if exist other items play a role in this process;function?mechanism and so on are inadequate.Therefore,this article want to research this problem form the perspective of government rules and regulation,establish four model to empirical analysis the mediating effect of factor price distortion in the process of the effect of government rules and regulation on over capacity.Analysis the mechanism?the degree?the direction and the result of influence on government rules and regulation on overcapacity in this period.This study not only correspond to the current economic condition,but also enrich the current studies of industory over capacity.This artical based on current national policys,can privoed a innovation idea on how to resolve the over capacity effectively.The results of this article mainly includes the following aspects:Firstly,starting from the definition of over capacity,esatablish a complete theoretical modle about the relationship about government rules and regulation over capacity and factor distortion.Base on the classifiction standard of high technology industry and choose five representative industries,after calculate the situation of utilization of capacity get the final result that many industries exist over capacity.Secondly,this artical choose capital and labor,using Cobb-Douglas function to establish SYS-GMM to caculate and analysis the distortion in the market of capacity and labor.It is concluded that in the factor market in China exist distortion of different degree,and the distortion in capital market is more serious than labor market.Thirdly,government rules and regulation is the main reason of over capacity in strategic emergency industory which is due to the inadequate reform in transition period except for market factor.Government use their power,provide land and capital supply for high growth companies,guide enterprice by externalizing internal cost,improve the exit barriers to prevent backward capacity leave the industory.Fourthly,factor distortion plays a mediationg role in the government rules and regulations which cause emerging industry overcapacity.Capital price distortions and labor price distortions have significant negative effects on the dependent variable capacity utilization,and after the introduction of mediation variables,the significant on independent variables reduced or disappeared which means uncompletely intermediary happened.Providing a new view on solving overcapacity,let us in thinking about the starting point of resolve this question no longer limited on the government rules and regulation this single factor.Base on the results of above research,this paper thinks that we should solve the overcapacity problem exits in the strategic emerging industry should suit the remedy.First to reform the government regulation,clear the borders on government intervention,and realize the real put political rights;Secondly perfect market mechanism,eliminate the factor distortion,introducing competition mechanism,promote production elements of the reform,break barriers and close down backward production facilities in a timely manner;Finally,expand domestic demand,develop strategy of "going out" to solve excess capacity,expand domestic demand,increase the market dynamics,grasp the international situation,raise own competitiveness,explore the great potential of overseas market and achieve reasonable use.