Measurement Of Capacity Utilization Ratio And Analysis Of Influencing Factors Of Capacity Utilization In China's Iron And Steel Industry

Since the reform and opening-up,with the rapid development of China's economy,a series of problems begin to show.The blind investment of local government," the wave phenomenon" of business investment,the incomplete exit mechanism of market and other phenomena have made many problems,includes the over investment of relevant industries in China,the large backlog of products,the sharp fall of production prices,the rise of inventory cost,low productivity and other phenomena.In recent years,the problem of overcapacity have seriously hindered the development of economics in our country,capital-intensive industry have low development,excessive government connivance results in the distortions of enterprise investment,a large number of "zombie" enterprises can hardly withdraw from the market because of the relief of bank.The overcapacity problems of China need to be solved quickly.This paper makes the iron and steel industry which is a traditional industry of China as an example.It is based on the status of overcapacity in China's iron and steel industry,and collects related data of iron and steel industry from 2001 to 2012 of 30 provinces,autonomous regions and province-level municipalities in China.It measures the capacity utilization of iron and steel industry for 12 years in China using a method called co integration method which was proposed by Shaikh and Moudoud in 2004.It analyzes the fluctuation of capacity utilization in China's iron and steel industry,and describes the condition of overcapacity in eastern,western and central region of China.Then it measures and compares the condition of overcapacity of four industries which are divided for the mode of production.At last,it establishes a panel data model,and does an empirical research about the relationship between economic fluctuations,local government investment,market demand,capital intensive and capacity utilization of steel industry.Finally it proves that economic fluctuations,local government investment and intension of capital have positive correlation with overcapacity,the correlation between market demand and overcapacity is not noticeable.This paper is divided into six parts:The first part is the introduction.It briefly describes the background,significance,content and train of thought of the research,then makes a brief introduction of the innovation and shortcomings of this paper.The second part is the existed literature reviewing.It introduces the existed literature from three aspects which are the concept of overcapacity,the reason of overcapacity and the measure of overcapacity.And the literatures are introduced from two aspects including domestic and foreign.The third part is the theoretical analysis of overcapacity in China's iron and steel industry.It introduces the theory from two aspects which are the formation and the impact of overcapacity in the steel industry of our country.The first part is illustrated from three aspects which are supply,need and exit barriers.And the second part is illustrated from three aspects which are enterprise,industy and society.In fourth part,we use the co integration method to measure the capacity utilization of steel industry in China.This chapter first introduces the principle of co integration method and some advantages of co integration method,then use the collected data including the iron and steel industry related data from 2001 to 2012 of China's 30 provinces,autonomous regions and province-level municipalities in China to measure the capacity utilization of iron and steel industry.Finally,it describes the condition of overcapacity in three parts and it measures and compares the condition of overcapacity of four industries which are divided for the mode of production.The fifth part is the empirical research on the influence factors of the overcapacity of iron and steel industry in China.This part constructs panel model,using panel data to empirically analyze the relationship between economic fluctuation,local government investment,market demand,capital intensity and the overcapacity of steel industry.The sixth part is summary and policy recommendations.Based on the above analysis,this paper gives some policy suggestions to government the overcapacity of iron and steel industry in our country.