An Analysis Of Factors Affecting Overcapacity In China’s Iron And Steel Industry

Overcapacity is a long-term problem in China.overcapacity has a long-term impact on China’s economic development.As the pillar industry of China’s economic development,the problem of overcapacity in steel industry is very serious.the government departments pay great attention to this problem,and take the control of overcapacity in steel industry as the focus of work.This paper studies the influencing factors of overcapacity in China’s iron and steel industry,which is conducive to fully understand the causes of overcapacity in China’s iron and steel industry.First of all,through the literature review of the steel industry overcapacity research,this paper can get the steel industry overcapacity research situation,is conducive to in-depth study of the steel industry overcapacity problem.This paper will empirically analyze the influence degree of these three factors on overcapacity in China’s steel industry from three aspects: government intervention,economic cycle and market demand.Secondly,this paper qualitatively analyzes the influence of government intervention,economic cycle and market demand on overcapacity in China’s steel industry.At the same time,this paper analyzes the overcapacity in China’s iron and steel industry from three aspects: the rate of change of price index,the utilization rate of the main products in the iron and steel industry and the measurement of the status quo of overcapacity in the local iron and steel industry.Thirdly,in order to further study the local steel industry overcapacity affected by the strength of the relevant factors,this chapter selects the government intervention,economic cycle fluctuations and steel demand of the three factors that affect the steel industry capacity empirical analysis,this paper takes government intervention as a threshold variable,through stata 13.0 software threshold regression reached the conclusion that: in each region of the total social fixed capital in the state budget funds accounted for the total amount of social fixed capital as the government intervention factors on the steel industry capacity in China,from the national level and the eastern region of the empirical results found that government intervention caused the overall and eastern region of China’s steel industry overcapacity important factors,and with The empirical results in central and western China show that governmentintervention is beneficial to improving the utilization rate of steel industry capacity,and appropriate government intervention is beneficial to speeding up the process of steel industry capacity removal.The fluctuation of economic cycle is the most important factor that affects the overcapacity of iron and steel industry in China.Whether at the whole level or regional level,the impact of economic cycle fluctuation has the greatest impact on the overcapacity of China’s steel industry.The increase of steel demand is an important influence to resolve the overcapacity in China’s steel industry.Finally,some policy suggestions are put forward according to the research results.