Study On The Relationship Between Market Structure And Overcapacity Under Government Intervention

Since Chinese Economic Reform and open up,China’s economy has maintained forty years of rapid growth under the guidance of all levels of government,and is known as the "world miracle" of economic growth.On the one hand,it embodies the urgent desire of our government and people to realize the country’s strong and the people’s prosperity,and actively seeks ways to realize it.On the other hand,it also conceals the hidden dangers of irrational economic development.For example,our country has appeared three rounds of overcapacity,excess capacity will cause the waste of resources,disadvantageous to the transformation and upgrading of China’s industry and increase the risk of financial and so on.From the government documents and previous research results,the coal industry has a serious problem of overcapacity.Shanxi is an important coal supply base in China.To study the problem of coal overcapacity in Shanxi is not only helpful to the healthy development of coal industry in Shanxi,but also has important reference significance to solve the problem of overcapacity in China’s coal.From the theory of industrial organization,the market structure has an important influence on the performance of the enterprise.However,the domestic scholars have disputed whether the market structure has an impact on the overcapacity.This paper takes the coal industry of Shanxi Province as an example to study the effect on the overcapacity from the perspective of government intervention in the market structure.On the basis of reviewing the related research literature on the mechanism of overcapacity,first of all,this paper makes a theoretical analysis on the influence of market concentration,product difference and industry barrier on overcapacity.Secondly,it uses cointegration method to measure the productivity utilization ratio of coal mining and washing industry of Shanxi province from 1999 to 2016,and gives a descriptive analysis of the changing trend of productivity utilization ratio,market concentration,enterprise scale,government subsidy and financial credit support in Shanxi coal mining and washing industry.Again,the data model of coal mining and washing industry in Shanxi province from 2006 to 2016 is constructed.The impact of market concentration,enterprise scale,government subsidy,financial credit support,investment proportion,coal production and marketing ratio on productivity utilization ratio and influence direction are tested.This paper draws the following conclusions:First,the productivity utilization ratio of coal mining and washing industry in Shanxi has been gradually increased from 1999 to 2007,which has a downward trend from 2006 to 2007.It has increased rapidly from 2008 to 2012 and reached its maximum in 2012.In recent years,there has been a downward trend,the productivity utilization rate in 2016 is 80%,close to the critical point of excess capacity of 79%,and the market concentration has a positive effect on productivity utilization,that is market collection.Moderate increase,the productivity utilization increase;third,the enterprise scale has a negative effect on the productivity utilization.The theoretical analysis holds that the greater the enterprise scale,the greater the resistance from the government,the bank and the workers,the more the industry is unable to withdraw from the industry,so the excess capacity in the industry is aggravated;fourth,the intervention of the government weakening the barriers to entry reduces the productivity of the industry.Rate of use.Based on the above conclusions,the corresponding countermeasures and suggestions are put forward: first,Shanxi coal mining and cleaning industry continue to merge and recombine to improve market concentration;second,cultivate land and financial factors market,formulate relevant rules and regulations,reduce government investment decision to enterprises,the government should provide good quality public service to create a good environment for development as the main function;third,We should strengthen the analysis of the coal market and rationally adjust the investment of coal mining and washing and washing capacity and capacity expansion in the province.