Study On The Regional Heterogeneity Of The Effect Of Land Price Distortion On Overcapacity

Since 1978,China's economic growth for more than three decades is driven by the government.Local governments implemented a series of supportive policies on taxation,land and industrial policies to effectively promote the process of industrialization in the region.The accompanying by-product of industrialization-the issue of overcapacity has also become a hot topic in all walks of life in recent years.In the face of the increasingly severe overcapacity,"going to capacity" is the first of the five major tasks for the supply-side reform in our country.“The Guiding Opinions of the State Council on Resolving the Paradox of Serious Overcapacity ”is a programmatic document that has been hailed as the solution to China's overcapacity.t points out the price distortion of factors of production caused by the lag of market-oriented reform of resource elements.This has led to a sluggish exit of backward production capacity and an aggravated contradiction of overcapacity.Based on this background,combined with the reality of the unbalanced regional development in our country,this article analyzes the formation mechanism of factor price distortion and overcapacity.And establishes the link between land price distortion and overcapacity under the guidance of local government.The paper analyzes the impact of negative distortions of land factor prices on overcapacity and its regional heterogeneity.In the empirical test,this paper estimates the degree of industrial capacity utilization and industrial land price distortions in China's sub-regions from 2000 to 2015 using the provincial data of 30 provinces in China and compares the capacity utilization rates and land price distortions across China and other regions.The results show that the current overall industry in China has excess capacity.The difference in capacity utilization between regions was significant.The change in capacity utilization rate in each province in the region was consistent with industrial policy and economic cycle.There are long-term negative distortions(>1)in the prices of industrial land factors in all regions of China,and the degree of distortion varies greatly,showing an overall upward trend;and the price distortions of land factors in various provinces in China are highly variable.Secondly,through the establishment of a dynamic panel data model,an empirical study of the regional heterogeneity of the impact of price distortion of land elements on overcapacity.The results show that there is a significant negative correlation between capacity utilization rate and price distortion of land elements.The effect of price distortion of land elements on overcapacity is not significant in Northeast China;the impact in the eastern,central and western regions tends to be consistent,both of which have an inhibitory effect on the increase of capacity utilization rate.Finally,on the basis of the research conclusions,combined with theoretical analysis and empirical tests,this paper proposes related proposals for resolving the overcapacity from the perspective of market price distortions and regional differences in land factors.It mainly includes improving the fiscal and taxation system and the performance evaluation system,accelerating the market-oriented reform of land factors,and continuing to promote regional cooperation to resolve excess production capacity.