Capacity Constraints Policy,Incentive Of Promotion And Transfer Of Industrial Land

Overcapacity has always been one of the problems plaguing China's economic development.In particular,to solve the global financial crisis in 2008,the "four trillion yuan" stimulus plan launched by our government has further exacerbated the problem of overcapacity.In response to this problem,our government released the Notice on Suppressing Overcapacity in Some Industries and Repeated Construction to Guide the Healthy Development of Industries in September 2009.Based on the panel data of 278 prefectural government industrial land transfer and officials from 2007 to 2012,this paper uses the DID model to measure the influence of capacity restriction that our government started to implement in September 2009 from the perspective of industrial land transfer.The effects of officials' personal characteristics were further analyzed.The first part of this article illustrates the background and significance of the topic,and reveals the possible innovations and shortcomings of this article.The following part is the classification and summarization of the existing relevant literature.The third part analyzes the data collection,the fourth part is the demonstration and analysis of the empirical results;the fifth part is the robustness test to ensure the accuracy of the conclusion of this article;the sixth part concludes the paper and accordingly put forward the corresponding policy suggestions.The study found that after the central government implemented the production capacity restraint measures,the quantity of the industrial land transfer granted by the local government to the restricted industries was significantly restrained,and the amount of land transferred to the restricted industries would be reduced by 0.31 and 2.83%of the area.However,the promotion incentive will to some extent affect the restraining effect of the capacity restriction policy on the transfer of industrial land by the local governments to the restricted industries.The weaker the incentive intensity of promotion,especially the older,the longer the term of the municipal party committee where the secretary is located,the less motivated to violate the central capacity constraint policy,thus reducing the transfer of industrial land to the restricted industries.However,in the cities where the pressure index is higher,the effectiveness of the central capacity restriction policy will be weakened,and the suppression of the transfer of land to the restricted industries will not be as effective as the promotion of less-pressured cities.All these show that although the central government's capacity constraint measures can indirectly ease overcapacity to a certain extent in the short term,in the long run,our country needs to adjust officials' evaluation and promotion system to achieve a sound and rapid economic development and to weaken the government's land resources administrative allocation of power.