Effect Of Local Government Intervention On China's Economy Dynamic Efficiency

In recent years,with the rapid economic growth,the quality of economic growth become a hot research.However,with the rapid economic growth,what's the efficiency of a country's economic growth in the end ? This relates to the dynamic efficiency of the economy.Dynamic economic efficiency is the capital stock of an economy and whether the economic growth required for the optimal capital stock(the Golden Rule capital stock)is consistent question: If capital stock is greater than the Golden Rule capital stock,the economy is dynamically inactive;If the capital stock is less than or equal to the Golden Rule capital stock,the economy is dynamically active.The core issue is whether the excessive accumulation of capital,it can be called capital accumulation dynamic efficiency.As we all know,China's rapid economic development has been relatively excessive haze,many industry overcapacity problem is a major obstacle to China's economic restructuring process.Different from several previous overcapacity situations,the behavior of government,especially local governments play an increasingly important influence on inducing enterprises excess capacity in the process.Local government intervention in business investment motive is very clear,the government bear some responsibility for the formation of production capacity surplus.Based on the above background,this paper presents the core hypothesis:Under certain conditions,the local government intervention led to China's current overcapacity problem,and continuing overcapacity will inevitably lead to economic inefficiency dynamic.Can explain fully the local government intervention under certain conditions,the economic dynamic efficiency.Around this hypothesis,this paper is based on two levels to expand research and demonstration from theoretical and empirical perspectives.Firstly,through the related Theories of Interpretation overcapacity content,combined with China's economic growth characteristics of local government for the analysis perspective,and local government intervention to induce excess capacity transmission mechanism and calculated fixed capital growth exploratory use "the growth rate of fixed capital / real GDP growth" to quantify the problem of excess production capacity,utilization 1992--Chinese provincial panel data from a dynamic model in 2013,proved that local governments can increase the intensity of expenditure by building land use approval and land transfer fees and other means to intervene in the economy,exacerbated by overcapacity.Secondly,in order to Dimon DS model was constructed based on adding the government factor mathematical model,excess capacity as a reasonable explanation on the dynamic efficiency through the profit margins of non-financial corporate sector as a proxy for capitalmarginal rate of return,the use of empirical data and revised guidelines for verification of China's economy is currently in a state of dynamic inefficiency.Finally,a reflection of Chinese economic dynamics invalid trend index and the overcapacity cointegration test results prove that the actual excess capacity and dynamic theoretical level invalid coincide.Finally,this paper summarizes the findings: In the current series of specific institutional China Arrangement and economic situation,local government intervention alienation induced business investment overheating,resulting in the production of the current China in the areas of excess capacity,excess capacity on the economy dynamic efficiency has a profound effect,continuing overcapacity means that the economic dynamic is invalid.In addition,this paper presents the corresponding policy recommendations in terms of elements of the market price mechanism,reform and improve the promotion system and other officials.