A Research On Measurement And Causes Of Excess Productivity Capacity In China's Province

China's economy has gained huge cross-step development,accompanied by the imbalance which is characterized by relative lack of domestic demand and relative excessive of investment.China's economic development has entered into a period of frequent excess productivity capacity.Since then,excess productivity capacity has gradually become the norm of China's economy.At present,how to explain and solve the excess productivity capacity has become the key issues to achieve a smooth and healthy growth for China's economy.On the one hand,when it comes to the definition of excess productivity capacity and the measurement of capacity utilization rate,the scholars from domestic and foreign are generally controversial;on the other hand,there is not yet announced overcapacity-related statistical data from Chinese government,besides,there is no conclusive method on excess productivity capacity measurement.In view of these,the article has selected various comparative indicators for excess productivity capacity measurement,from the macroeconomic level to measure Capacity Utilization Rate.Based on the theory of microeconomics,This paper analyzes the excess productivity capacity from the aspects of provincial macroeconomics.This paper adapts the cost function method proposed by Berndt&Morrison(1981),using Generalized moment estimation method(GMM)to measure the capacity utilization rate of 31 political regions in China from 1993 to 2014,from the aspects of growth,structure,the distorted price of production factors and government behavior factors.At the same time,in the way of the ordinary least squares regression model(LS),this paper makes a qualitative analysis of the causes of excess productivity capacity in China,from the aspects of economic growth;economic structure;distorted factors price and government behavior.In terms of quantitative analysis,the article draws on the decomposition of the influencing factors of the level of productivity utilization based on the regression equation proposed by Fields&Yoo.The paper says that the economy growth,the structure and the distorted price of production factors are the most important factors that causing the excess productivity capacity in our country.The influence of the government behavior on the excess productivity capacity is not outstanding.Excess productivity capacity is an indispensable stage to achieve prosperity and prosperity,not to mention to adjust to the transition from high speed to mid-high speed.The behavior of the Chinese government can affect the degree of overcapacity,but the role is limited.