Research On The Measurement And The Influencing Factors Of Chinese Manufacturing Sectors

One of he outstanding issues is excess capacity at this stage in China's manufacturing industry.Overcapacity is a normal phenomenon imbalance between supply and demand in the conditions of market economy.However,If the production capacity exceeds the effective demand to some extent,the excess capacity emerges will cause many negative effects.Overcapacity can not only results in non-effective allocation of resources and energy,but also oversupply of product will results in prices fall,the loss of benefits in the enterprise,vicious competition between industries,the bank credit risk increase,the entire manufacturing industry market sentiment index drop,future development expectations decline,poor quality of economic operation.It will affect the healthy and sustainable development of the national economy as a whole.At the same time,staff welfare protection declining and even large-scale layoffs will bring people's livelihood and re-employment problems,which damaged social stability.The issue of excess capacity has caused a high degree of attention,thought from government,business,society and academia.And they are starting to carry out research.Based on the theory of microeconomics,this paper explains the formation of overcapacity,and points out the defects about the interpretation of classical economics,which is based on the domestic and foreign literatures related to the study of excess capacity and excesses.And it will explore from the government,business and consumer three aspects of the different role of China's overcapacity problem formation mechanism.Using the production function method,the manufacturing industry will be measured in 28 industries(13 light industry,heavy industry 15),the level of capacity utilization from 2005 to 2014;Establishing the capacity utilization evaluation criteria to distinguish which industry is overcapacity and how to change in the past decade;On the basis of these,there are two industries that have serious long-term overcapacity,two light industry sectors and five heavy industry sectors,then the paper analyzed and compared the overcapacity industries.Aiming at the overcapacity industry in 7 industries,the panel data model was established,and the influencing factors of the overcapacity were analyzed.The corresponding conclusions were drawn from the research results.Based on the empirical results,this paper puts forward some suggestions on how to solve the problem of overcapacity in China's manufacturing industry.