The Influence Of Local Government Intervention On The Capacity Utilization Of Xinjiang Manufacturing Industry

Manufacturing industry is a pillar industry of China's national economy and is highly concerned by the central government.Since the economic crisis in 2008,overcapacity in the manufacturing industry has become increasingly serious.The country has introduced a series of capacity-reduction policies,but with little success,excess production capacity has repeatedly emerged.Xinjiang's unique geographical position has determined that it has a very important strategic position in the national economic development process.therefore.It is of theoretical and practical significance to study the production capacity of Xinjiang's manufacturing industry,explore the impact of local government on the utilization of production capacity,and provide reference opinions for the government to handle excess production capacity.This article uses the literature analysis method to find out the angles and directions that scholars at home and abroad rarely studied before and determine the research content of this article.First,the definition of capacity utilization,the connotation of government intervention,and the interaction theory between local government and capacity utilization,such as impact incentives,institutional foundations,and impact paths,are defined.Then,the factors affecting capacity utilization are described because of fiscal decentralization.As for the promotion system and other reasons,local governments have a strong incentive to “take care” of corporate investment behavior,mainly through financial expenditures,domestic loans,and land support,and even cause serious pollution of the local environment.In this article,through the comparative analysis method,using the DEA model,we calculated28 industry-related data of the Xinjiang manufacturing industry from 2001 to 2016,and obtained the capacity utilization rate to understand the capacity utilization situation of the Xinjiang manufacturing industry and further analyze the manufacturing.The characteristics and trends of capacity utilization in various sectors of the industry show that the changes in capacity utilization in most industries are in line with changes in the economic cycle.Then use regression analysis to get the effect of Xinjiang's local government intervention on the utilization of production capacity.On this basis,corresponding policy recommendations are proposed,such as:improving the performance appraisal system of the government,improving the industry's entrepreneurial environment,accelerating industrial restructuring,and improving the statistical monitoring system.