The Influence Of Targeted Supportive Policies On Excess Capacity Of Xinjiang Cement Industry

In 2010,a new round of targeted supportive policies expedited the accelerated development of Xinjiang’s economy.However,to a certain extent,it escalated the excess capacity of Xinjiang’s cement industry,which seriously hindered the industry’s sound growth.Therefore,the scientific evaluation of the impact of targeted supportive policies on the excess capacity of the cement industry in Xinjiang is especially important.In this paper,the data envelopment method is used to measure the capacity utilization rate of the cement industry in each city and province of China between 2006 and 2016,which is then used to evaluate the extent of excess capacity.At the same time,targeted supportive policies implemented in 2010 is taken as a natural experiment,and the synthetic control method is introduced to analyze the impact of targeted supportive policies on the excess capacity of the cement industry in Xinjiang,and finally the application of multiple mediation effects models for in-depth research.The research results have shown that: First,the excess capacity of Xinjiang’s cement industry has aggravated since 2010,and the capacity utilization rate has continued to decrease staying at a low figure of about 40%,which is significantly lower than the national average.Secondly,the implementation of targeted supportive policies has significantly reduced the capacity utilization rate of the cement industry in Xinjiang by as much as 15.79-31.90%relative to its potential level since 2010,resulting in serious excess capacity issue.Third,the change in the degree of monopoly power and the macroeconomic fluctuations can explain the partial impact of targeted supportive policies on the excess capacity of Xinjiang’s cement industry and have a transfer effect on the policies’ impact on the excess capacity.Finally,based on research,this paper proposes relevant policy recommendations to further resolve the excess capacity of Xinjiang’s cement industry and to improve targeted supportive policies and its effectiveness.