A Study On The Influence Of Government Subsidy And Market Concentration On The Capacity Utilization Of Enterprises

Overcapacity has always been a bottleneck for the healthy development of cement industry.At present,the industrial policy of capacity reduction mainly includes two aspects: capacity reduction subsidy and industry concentration improvement through merger and reorganization.In 2009,the State Council issued No.38 opinions on curbing overcapacity in some industries and repeated construction for guiding the healthy development of industries,which clearly proposed to strictly control the new cement production capacity.However,the new capacity has been banned repeatedly.In 2017,China Cement Association issued the action plan for cement industry's capacity reduction(2018-2020),set up a special fund for capacity reduction,and formed a capacity reduction mechanism combining government led and market mechanism.it encourages the merger and reorganization among enterprises,supports the market integration of mutual equity participation,entrusted operation,asset exchange and other ways,so as to optimize the market layout and improve the market concentration.However,in the process of practical implementation of these policies,repeated replacement and zombie capacity resurrection are emerging in an endless stream,which has become the main reason for the industry's overcapacity.Therefore,industrial policies such as government subsidies for capacity reduction or merger and reorganization of leading enterprises have not actually improved the current situation of overcapacity in the cement industry.In order to explain the reason why the industrial policy has no obvious effect on solving the overcapacity of cement industry,Firstly,based on the periodic overcapacity model,this paper makes a theoretical analysis of the mechanism of government subsidies affecting the capacity of enterprises.Secondly,based on the input-output data of 16 listed companies in 2009-2018,this paper uses the data envelopment method to measure the capacity utilization rate of these 16 cement companies in the past 10 years,and makes further statistical analysis on the nature of ownership and regional differences.Finally,this paper analyzes the influence mechanism of government subsidies and market concentration on capacity utilization through empirical research.The main conclusions of this paper are as follows:(1)Theoretical analysis shows that in the absence of government subsidies,enterprises only generate periodic overcapacity in the second stage due to exogenous demand shocks;and after the introduction of government subsidies,enterprises may generate overcapacity in the first stage,and the overcapacity is mainly caused by capacity subsidies.This theoretical analysis is supported in the later empirical research.(2)The results of capacity utilization rate show that the overall capacity utilization rate of cement industry is declining;the capacity utilization rate of non-state-owned holding enterprises is higher than that of state-owned holding enterprises;the capacity utilization rate of enterprises in the central region is the highest,followed by enterprises in the eastern region,and the lowest in the western region.(3)The results of empirical research show that the increase of capacity subsidies will lead to the decrease of capacity utilization rate,that is to say,the increase of capacity subsidies will lead to the increase of capacity utilization rate;there is a significant inverse "U" relationship between capacity utilization rate and market concentration.Further analysis shows that from the research samples in this paper,the current market concentration of cement industry has been in the decline range.If we continue to improve the market concentration,it will not improve the capacity utilization rate of enterprises,but will make the capacity utilization rate decline.In the regression results of model(5-1)(5-2),the regression coefficients of other control variables except 2)(9 are significant.Among them,the proportion of state-owned shares(2))is negative;the regional dummy variables and is also negative,and is smaller;the regression coefficient of the capital density()is also negative,and its absolute value is larger.In the model(5-3),the regression coefficient of 2)(9 is significantly positive,and the other control variables are almost the same as the model(5-1)(5-2).Therefore,in order to improve the capacity utilization rate of cement enterprises,the government should reduce the capacity subsidies;at the same time,according to the specific situation of the capacity utilization rate,the government should also dynamically adjust the target of market concentration,not blindly pursue to improve the market concentration;secondly,the government should give full play to its advantages in data collection and information processing,establish and improve early warning Mechanism,only in this way,the uncertainty of external demand and the instability of macroeconomic development can minimize the negative i1 mpact on capacity utilization.