Study On The Relationship Between The Overcapacity And The Industry Policy

Overcapacity has been one of the most significant restraints which drags down the quality and speed of state economic growth,and leads to the inefficiency of resource allocation over the last several years.Nowadays,the problem is far beyond traditional industries such as steel,cement,plate glass,emerging industries are also tainted.Take the photovoltaic industry for example,industry policies e.g.financial subsidy,tax preference,elemental support has stimulated the growth of PV industry.Under the global background of green economy,China has taken PV as one strategic emerging industry among seven.Therefore,the research on industrial status and regulation environment of PV is crucial to the analysis of current industrial problem in now and coming days,also,to the cure of overcapacity and reconstruction of PV industry,the ease the volatility of economic growth and the stabilization of macro-economy.This paper deeply analyzed the current situation of PV industry adopting the relating economic theories e.g.market&government failure.First of all,the current overcapacity situation of domestic PV industry is analyzed by production function methods,then the quality of PV industry by analytic hierarchy process,in the end,the impact and transmission mechanism of government subsidy on company capacity investment by dynamic panel data model analysis.it is of great importance to the healthy growth of PV industry both theoretically and realistically.First of all,this paper get the current situation and character through the analysis on current domestic PV industry chain;Secondly,through the analysis of PV industry policies,this paper unveiled the industry policy circumstance,summarized the character and direction of industry policy,analyzed the model and mechanism of industry policy.In the 3rd part,this paper studied the relationship between subsidy policy and PV industrial capacity investment.This paper collected financial data from listed company,empirically analyzed the impact mechanism of subsidy income obtained by PV company on capacity investment and the preference of industrial policy by setting up dynamic panel data model.research found out that subsidy had significant incent on capacity investment.Eventually,on the basis of former analysis,this paper come up with policy suggestions on three aspects:At first,we need to improve the industry admittance and relating technological standards,secondly,we should pay attention to the variation while enacting industrial policies,when dissolving overcapacity,supplementary measures should be guaranteed to avoid volatility of economic growth.Finally,we should balance the industry information flow,and improve the system of information releasing.