The Empirical Analysis Of Macro-Control And Industrial Policy Of Steel Industry In Our Country

Since the founding of China, its steel industry has enjoyed a quick speed of development. Especially, in recent years, benefiting from China’s overall good economic environment as well as the policy and the rapid development of construction industry, railway transportation, metal manufacturing and other related industries, the demand for steel is continuous increasing and further promoting the development of the steel industry. In2014, China is already the world’s largest steel producer and consumer. With the development of China’s steel industry, the share of China’s steel in the international market and the competitiveness increase sharply. However, the issues, such as optimizing the industrial layout, upgrading the industrial structure, innovation, improving product quality, still need to be further resolved. There is still a huge gap between countries with large steel production and the ones with good competitiveness in steel industry.The importance of the steel industry makes the government notice its problems in the early stage and implement many measures to achieve the healthy development of the steel industry. However, these seemed that it did not achieve the desired results. Take overcapacity as an example, although the government saw this problem as a solution to the core problem of the steel industry and implemented a number of programs, the problem of overcapacity still exist and limit the development of the entire steel industry.This paper is aimed at analyzing the effects of China’s macro-control towards the steel industry. Through theoretical analysis and empirical research on the steel industry, studying governmental macro-control effects, combined with the status quo of China’s steel industry, and other national macro-control policies towards the steel industries in history, this paper is trying to reveal the effects of macroeconomic regulations of China’s steel industry. Based on the findings of these studies, some useful recommendations can be expected. Firstly, the impacts of monetary policy, fiscal policy and industrial policy about the steel industry are analyzed theoretically. Then, some existing problems are raised by studying the status quo of China’s steel industry, as well as historical macro-control policies of China’s steel industry. An econometric model is established to figure out the impacts of monetary policy, fiscal policy and industrial policy of macroeconomic control in China’s steel industry. On the basis of the analysis of historical policies in other countries, combined with the conclusions from econometric models, some recommendations for China’s steel industry are elaborated carefully.According to the analysis, the macro-control of the steel industry can affect the development of the steel industry to a certain extent. However, the government should improve the process of formulation and implementation of macro-control policies. Besides, it is good for the government to combine the monetary policy, fiscal policy, as well as industrial policy, regulate the competition within the industry, and encourage technological progress in the steel industry. Therefore, China’s steel industry will have a higher degree of international competitiveness, as well as a healthy and harmonious development.