Government Investment Impulse,and Emerging Industry Overcapacity Study

Overcapacity is a problem to be solved in the process of economic development in our country.Excess capacity is not only to traditional industry,and at the same time also affected the represented by PV industry emerging industries.Emerging industry in the field of excess production capacity is different from industries,and its performance more as a kind of periodic bubbles,excess and assimilation tendency on regional investment in industry.What is the formation mechanism of the emerging industry overcapacity ?How should we deal with,in this paper,we will discussed with an example of PV industry.In this paper,we first appeared on the current status of the photo-voltaic industry development in our country an its problems are discussed and summarized.In our paper,with rapid development of PV industry as representative emerging industries are the result of the government push,PV industry is a policy driven industries.In the PV industry development process,core of technology is insufficient,the domestic market has not been effective cultivated,the PV industry has become a low levels of repetitive construction and capacity.And one of the cause is that excessive government intervention,its impulsive behavior in the project of PV industry.The high density of government incentives caused firms enter excessively,and also promote the excessive competition among firms within the industry,and then caused the further surplus of production capacity.Hence,the government investment impulsive is the leading cause of PV industry excess capacity.Based on this,we holds the opinion that the solution of pv industry excess capacity should be as this:clear the border of government and market guide,improve the methods of policy implement,optimize the system supply,reduce ineffective investment,modest weakening convergence for investment.So that to relieve the overcapacity situation,and promote its healthy development.