| With the rapid development of economy of our country,the problem of excess capacity has been emerged for many times since the 1990’s,which exercises a wide influence on multiple industries.Among them, the most serious and lasting problem exists in the steel industry,showing up as imbalance of supply and demand and huge idled capacity.The problem of excess capacity in the steel industry has a negative effect on the economy of China,therefore,causing great concern in the government,which has been introduced a series of policies to govern the chronic disease.When we make a literal review,it seems that there is particularity in the formation mechanism of steel industry’s overcapacity,because investment in enterprise,local government intervention and the business cycle play the major role.Meanwhile,this paper holds that domestic and foreign demand is also a key factor which can impose an influnce on the problem.Then,this paper makes a systematic analysis of the formation mechanism of steel industry’s overcapacity.Next,this paper uses the method of production function to measure the rate of capacity utilization of our country and every province(except Tibet and Hainan province) from 1994 to 2013,revealing that the steel industry’s overcapacity is a serious problem across China.Subsequently,this paper chose excess capacity as explained variable,and chose the factors in the formation mechanism as explanatory variables to measure the extent of the impact of all the factors on the excess capacity of our country and each region through panel data model.It is suggested that,at the national level,investment in enterprise,local government intervention and the business cycle have a positive correlation with excess capacity,while there is a negative correlation between it and domestic demand.The extent of the impact of all the factors differs by region.At last,on the basic of the result of panel data model,this paper gives some advise and suggestion accordingly from the point of enterprise and government respectively,in hope of making a contribution to deal with the problem of excess capacity in the steel industry. |
