Study On The Evolvement Of Marketization Influences On China's Industry Capital Misallocation

With the rapid development of economy, our country's economy has entered the transition period by the total growth to structure optimization. There are lots of facts that resources misallocation leads to the decline in efficiency of economic growth in the economic operation of the reality. How to optimize the allocation of resources on the supply side and stimulate the market potential has become the key to maintain sustained economic steady development. However, the efficiency of capital allocation in different industries have bigger difference. So from the industry perspective, discussing the marketization process influence on capital mismatch has important theoretical value and practical significance.The marketization process is based on market demand as the guidance, and a gradual process that constantly strengthen the role of market mechanism of resource allocation; Capital mismatch is a deviation from the pareto optimal. This paper interpreted mainly elements price theory and flow theory by analyzing the error correction mechanism of the marketization process and capital mismatch, the analysis pointed out that factors of the price will be more real and effective, factors flow market environment will be more perfect, the government administrative intervention and distorted policy will reduce, when advancing marketization process, thus reduce the degree of capital misallocation. The paper analyses the data of 35 industries in China and measures the situation of marketization and capital misallocation from 2000 to 2012, then further study the relationship between the degree of marketization and capital misallocation.The empirical results show that:The greater the proportion of state-owned economy, the slower marketization process, at the same time, most industries have capital mismatch condition in our country, showing crowded and scarce respectively, the unreasonable capital allocation, on the one hand, caused capital to the industries with excess capacity, on the other hand there is a capital needs are not being met,and has a huge capital demand gap, misallocation leads to overcapacity and scarced. Therefore,improve the marketization process and marketization level, reducing capital mismatch degree and transferred capital to the inadequate investment industry help to achieve the optimal in capital allocation. In addition, we will accelerate reform of the property right system, improve the proportion of foreign investment, reduce R&D capital investment and increase the productive capital investment.These measures are significantly improve the condition of capital misallocation.Costs and scale in different industries have different influence, in the industries with excess capacity crowd, the higher of the cost and the stronger of industry scale help to improve capital mismatch condition; In the industries of scarced capital, if the cost is lower and the industry scale is smaller, the efficiency of capital is higher.Finally, according to the conclusion of theoretical and empirical analysis, this artical puts forward the corresponding policy suggestions, which can reduce the degree of capital mismatch, such as a directional to low the deposit reserve rate and interest rate, improve the pricing mechanism of capital elements, guide the reasonable and orderly flow of capital; speed up the capital factor market cultivation, promote the reform of non-state-owned economy; and specification of government functions, etc.