Performance Analysis Of The Impact Of Government Subsidies On Strategic Emerging Industries

Government subsidies,as the most direct intervention in the implementation of government industrial policies,play an important role in regulating the relationship between the government and the market.Government subsidies provide a powerful driving force for the development of strategic emerging industries.However,in practice,we find that government subsidies do not have a positive effect on all strategic emerging industries.As a strategic emerging industry,the photovoltaic industry has gone into the situation of overcapacity,declining efficiency and stagnant industrial development under the government's subsidies.The same government subsidies to strategic emerging industries,but there are two very different phenomena.This kind of phenomenon has caused scholars to question the government subsidies for strategic emerging industries.Does the strategic emerging industries need subsidies at all? What is the actual impact of government subsidies on the performance of strategic emerging industries? The answer to these questions lies at the heart of formulating future strategic emerging industrial policies and managing the relationship between the market and the government.Based on this background,this paper attempts to explore the impact of government subsidies on the performance of strategic emerging industries.This article mainly from two aspects of theory and empirical study,the first theoretical analysis of government subsidy mechanism of influence on the performance of strategic emerging industries,and the seven strategic emerging industries at present's stage of life cycle,combined with the industry life cycle theory argument whether strategic emerging industries need subsidies,prove the necessity of government subsidies;Secondly,through the establishment of a short panel mixed regression model,from the industry life cycle stages and points two angles to explore the government subsidy and the correlation between strategic emerging industries economic performance,economic performance of strategic emerging industry enterprises and the theory of relationship between government subsidies has carried on the empirical test,to verify that the government subsidies on strategic emerging industries economic performance.After the above analysis and research,the following main conclusions are drawn in this paper:In terms of theoretical analysis,it is found in the analysis of the influence mechanism of government subsidies on the performance of strategic emerging industries that government subsidies can bring a positive impact on industrial performance,while there is also a phenomenon of negative impact on industrial performance.However,given that all the seven industries of China's strategic emerging industries are in the embryonic stage and growth stage,the overall strategic emerging industries are still in the early stage of development,and there is still a long way to go before the overall development is mature.Therefore,the industrial life cycle attribute of strategic emerging industries is a practical need for policy support.At the same time,considering the inherent market defects of strategic emerging industries and the construction of new advantages of international competition is the strategic purpose of policy support,the conclusion that strategic emerging industries need government subsidies is drawn from the theoretical analysis.From the perspective of industrial life cycle,the impact of government subsidies on strategic emerging industries at different stages of industrial life cycle is significantly different.At present,China's government subsidies have a significant positive correlation with the growth of strategic emerging industries,and a significant negative correlation with the budding strategic emerging industries.From the perspective of the empirical test results of inheritance,the strategic emerging industry in China at present stage government subsidies have certain economic performance,government subsidies for seven strategic emerging industries in the four major industries(a new generation of information technology,biological industry,new materials,energy conservation and environmental protection)can generate significant positive role in promoting,overall government subsidies for strategic emerging industry in China is a positive promoting effect,the empirical results also examined the rationality of the theory of the third chapter analysis the conclusion and correctness.Based on the above conclusions,this paper combined with the actual situation of seven strategic industries,from the perspective of industry life cycle to establish the corresponding supervision mechanism of subsidy,formulate subsidy policy and innovative guide reasonable allowance strength and scope of these aspects put forward the corresponding policy implications,in order to improved strategic emerging industry profitability in China to provide some reference.