Study On The Influence Of The Industrial Concentration On Excess Capacity In Steel Industry

With the development of the national strategy of supply-side reform,overcapacity,which is the primary task of supply-side reform,has been paid more and more attention by the government.As the basic and pillar industry of national economic development,the steel industry is the industry with the most serious overcapacity and the longest duration.It is considered to be a typical overcapacity industry as well as the industry that gets the most attention from the government.The steel industry appeared the overcapacity in 2003 and in the past decade,the country has introduced a number of policies to deal with the excess capacity of the steel industry,but with little effect.The regulation has fallen into the strange circle of "more regulation and more expansion".It is noted that in recent years,the country has begun to shift from total capacity regulation to structural capacity regulation,and the key link in promoting structural capacity adjustment in the steel industry may come from the merger and reorganization.And in 2016 the country issued the guidance on promoting the merger,reorganization and disposal of zombie enterprises in the steel industry.As the top-level design scheme for removing excess capacity and optimizing the structure of steel industry,the guiding opinion sets a general goal for the market concentration of steel industry,in order to strengthen the integration of steel industry resources and improve the degree of industrial concentration through merger and reorganization.Can it really get rid of the strange circle of overcapacity regulation by increasing the concentration of the steel industry and effectively resolve the overcapacity? Based on the above question,the paper discusses the influence of steel industry concentration on overcapacity.This paper will analyze the influence of steel industry concentration on overcapacity from theoretical and empirical aspects.By discussing the influence mechanism and degree of steel industry concentration on overcapacity,the paper wants to provide some theoretical support and policy reference for thegovernment.The paper is divided into seven parts,the structure of the paper is listed as follows:The first chapter is the introduction.It mainly introduces the background and significance of this paper,domestic and foreign research,research content as well as methods.And a brief introduction of innovation and deficiencies will also be listed.The second chapter is the comprehensive index measurement of overcapacity in steel industry.Different from the analysis of overcapacity which is expressed by a single capacity utilization index,this paper selects several indicators to reflect the degree of overcapacity and combines them with entropy weight method.The comprehensive index of overcapacity is taken as a more comprehensive index to reflect overcapacity.The third chapter is the measurement and analysis of steel industry concentration.It is divided into two sections.The first section briefly introduces the calculation method of absolute concentration index and the corresponding classification of market structure.The second section discusses the problem about low concentration degree in the horizontal and vertical comparison as well as the international comparison of steel industry,and finds that the trend concerning the low concentration degree and the comprehensive index of overcapacity measured in chapter two is identical.The fourth chapter analyzes the influence of steel industry concentration on overcapacity.It is divided into two sections.The first section discusses the influence mechanism of low concentration on overcapacity of steel industry,mainly from the impact of low concentration on overcapacity of investment and structural overcapacity.The second section uses the empirical model to discuss the relationship by analyzing the impulse response diagram.The impulse response diagram can examine the influence process within a period of time,and its dynamic characteristics can reflect this relation intuitively.The fifth chapter is an analysis of the causes of low concentration in steel industry.Through the analysis of large and small steel enterprises in the market and the barriers to entry and exit,the reasons for the existence of low concentration degreein steel industry are expounded.The sixth chapter is the international experience concerning solving overcapacity of steel industry through raising the degree of industrial concentration.As a developed industrialized country,Europe,America and Japan have also appeared overcapacity during the complete life cycle of the steel industry.They successfully used measures of improving industrial concentration to resolve overcapacity.By summing up measures,the paper concludes its reference experience.The seventh chapter puts forward the measures that the government can take to resolve the overcapacity based on the concentration of the steel industry.