A Study of the Mechanism of Government Intervention on Excess Capacity Through the Enterprise Overinvestment in China

Q2 Economics, Econometrics and Finance
Biliang Hu, Zhiyi Liu, Sha-sha Fan
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引用次数: 5

Abstract

This article summarizes government publications focusing on excess capacity from the 1990s to 2016 and argues that the market-oriented principle needs to be established to deal with the long-standing excess capacity issues in China. Based on the specificity of the long-term excess capacity in China, this article puts forward the hypothesis: The excess capacity in China is derived from the enterprise’s overinvestment, and the government intervention is one of the main drivers of the problem. The intervention is actuated by the GDP-based government performance assessment through such means as offering privileges on land use, environmental ignorance, natural resource provision and financial support. This article (a) calculates capacity utilization of 30 manufacturing industries, (b) builds a ‘mediation effect model of overinvestment’, and (c) makes use of the industrial data, economic development data and capacity utilization from 1998 to 2017 to test the hypothesis. The result shows that government intervention indeed has a significant influence on excess capacity. The support for land use and the tolerance for environmental pollution are two of the most persuasive reasons. Therefore, the Chinese government needs to make greater efforts to deepen the market reforms, standardize and improve the factor market so as to accelerate innovation, and push for industrial upgrading.
中国政府通过企业过度投资干预产能过剩的机制研究
本文总结了20世纪90年代至2016年关注产能过剩的政府出版物,并认为需要建立市场化原则来解决中国长期存在的产能过剩问题。基于中国长期产能过剩的特殊性,本文提出假设:中国的产能过剩源于企业的过度投资,政府干预是问题的主要驱动因素之一。干预是由基于GDP的政府绩效评估推动的,通过提供土地使用特权、环境无知、自然资源提供和财政支持等手段。本文(a)计算了30个制造业的产能利用率,(b)建立了“过度投资的中介效应模型”,(c)利用1998年至2017年的工业数据、经济发展数据和产能利用率来检验这一假设。结果表明,政府干预确实对产能过剩产生了显著影响。支持土地使用和容忍环境污染是两个最有说服力的原因。因此,中国政府需要加大力度深化市场改革,规范和完善要素市场,以加快创新,推动产业升级。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Global Journal of Emerging Market Economies
Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)
CiteScore
2.70
自引率
0.00%
发文量
27
期刊介绍: Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.
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