Research On Influence Of Fiscal Competition On Overcapacity

Overcapacity is a big problem in the process of economic transformation and upgrading in China,some industry long-standing obstacle overcapacity in the industry structure optimization,and to achieve sustainable economic development in western China must overcome the obstacles.China's economic work conference in 2015 will go to the capacity as the five economic task,highlights China's determination to resolve the current overcapacity and wishes.Some do not conform to the economic law behavior of local government is the key reason for the excess capacity,which is the important content of local government behavior finance competition between local governments.Throughout our country economy development,the key factor for rapid economic growth since reform and opening up,the government through in the form of tax breaks and adjust the expenditure structure attract resources,to achieve economic growth within their respective jurisdictions of government officials and political capital accumulation.Deeply to see,however,the financial competition of government its economic cost and social cost expense to attract business investment,stimulating business investment desire,can make the enterprise blind expansion form excess capacity;at a competitive disadvantage of the government will need because of the political interests,increasing dependence on financial competition to economic growth,on the one hand,the benefits of enterprise investment is not enough to make up for the loss of local government economic cost and social cost,the government is still at a disadvantage in the competition,thus forming a vicious circle,on the other hand the government fiscal spending too tilt to the productive sector,cause government investment form of repeated construction,lead to overcapacity.In order to further explore the financial competition and the relationship between the excess production capacity,in this paper,on the basis of previous studies,combined with the actual situation in our country,using DEA method to measure capacity utilization,construct measure fiscal competition index,using Tobit regression analysis to discuss the financial competition affect the degree of excess production capacity: in measuring the capacity utilization,this article selects 2000-2015 national outside Hong Kong,Macao and Taiwan regions,Tibet industrial data of 30 provinces,municipalities directly under the central government and autonomous regions,measuring the provincial capacity utilization in our country.In building indicators to measure financial competition,in addition to draw lessons from existing research results in this paper the measure of the tax competition,summarizes the theory by using the measure of government expenditure structure change of relative productivity bias,and through comparison between calculated result and the actual situation.In determining the financial competition degree of excess production capacity,according to the Tobit regression results that in the short term to preferential tax measures of tax competition effect on capacity utilization has more obvious improvement,spending is measured by the expenditure structure change have a negative effect on the capacity of competition,in the long term fiscal competition on capacity utilization has obvious negative role in promoting,at the same time combined with LDK bankruptcy reorganization case inspection accuracy of the empirical results.Finally,this paper argues that dissolve excess capacity from the Angle of financial competition is a need to optimize the political appraisal system,establish a long-term mechanism to promote the formation of cooperation between the government to weaken the financial competition the negative effect on the capacity utilization;The second is the need to accelerate reform of the tax system,the establishment and economic conditions that meet the needs of industry,the tax policy guidance to the enterprises moderate investment;the third is to gradually increase service spending and increase the region's economic development potential;the forth is the government to ensure that reduce activity intervention to the market under the macroeconomic regulation and control status,give full play to the market adjustment mechanism.