Study On The Causes And Countermeasures For The Problems Of Excess Capacity In Qijiang

Since the end of the twentieth Century,the process of industrialization and urbanization has been accelerated.However,the extensive mode of economic growth and imperfect mechanism in China result in overcapacity problem.As the old industrial base of Chongqing,Qijiang is also facing the problem of excess capacity,especially in the coal based energy industry,which has a negative impact on the economic growth of Qijiang.Therefore,the analysis of the reasons for excess capacity in Qijiang and proposed countermeasures to resolve excess capacity is particularly important.First of all,we calculates the capacity utilization rate of the industries and analyzes the present situation of overcapacity in Qijiang,and we found that the overcapacity problem has been solved to some degree in recent years,but the coal industry overcapacity problem still exists,mainly in the capacity utilization rate is low,the output value of the decline in output,an increase in liabilities,which increase the industry risk and undermine the healthy development of the industry.Secondly,we analyze the causes of the problem of excess production capacity in the Qijiang area using the product life cycle theory,investment theory,information asymmetry theory and the soft budget constraint theory,which mainly includes two aspects,one is the market reason: enterprise investment path dependence,enterprise blind investment and the degree of information asymmetry lead to excessive investment enterprises and cause the problem of excess production capacity;two is the reason of the government,including the driving mechanism of GDP appraisal promotion mechanism,financial pressure,the soft budget constraint and a series of unreasonable industrial development policy,further exacerbated the problem of overcapacity.Then this paper summarizes the measures in Qijiang to resolve the overcapacity,including propaganda and guidance,policy incentives,structural adjustment and supervision forced four aspects,these policies have achieved certain results,but there are also some problems of overcapacity still exists,such as the lack of funds and premium corporate debt difficulties.In addition,this paper also summarizes the effective measures and experience at home and abroad to resolve the overcapacity,resolve excess capacity must accelerate the system innovation of government macro-control,respect the laws of the market and government combined,promote enterprise technological innovation,expand demand,build long-term mechanism of governance overcapacity.Based on the above research,this paper puts forward countermeasures and suggestions to resolve the overcapacity in Qijiang from the angle of government management:to build a diversified evaluation mechanism;promote the supply side reform,guide the adjustment of industrial structure,encourage the development of new industries;through tax cuts,subsidies,and other preferential financing guarantee incentives for enterprise technology innovation;to promote employment and improve the social security system,improve people's consumption capacity,expanding domestic demand;encourage existing business transformation investment development;to establish accurate industry information release system,the formation of long-term supervision and inspection mechanism,so as to resolve the excess capacity as soon as possible and promote the healthy development of economy and society in Qijiang.