Research On Provincial Capacity Utilization Under The Influence Of Government Behavior

Since the middle of 1990 s,the phenomenon of excess capacity has emerged in some areas and industries in China.Starting from the financial crisis that broke out in 2008,the third round of excess capacity has taken place in China.The excess capacity of this round involves a wider range and a deeper level of severity.In order to solve this problem effectively,the State Council has issued a series of documents that are used to guide local governments to cope with excess capacity.However,how large the excess capacity is,how the regional difference is,how to solve the problem of overcapacity in depth is a problem that needs to be discussed theoretically.Therefore,it is urgent to measure excess capacity and exploit reasons for it.Our country actively promotes the strategy of "going global",and enterprises can hit the overseas market for OFDI activities.This way becomes a reasonable choice to solve the excess capacity.In this paper,we first calculated capacity utilization rates of 30 provinces from year of 2005-2014 by the method of cost function,and decompose the influence of different factors on the capacity utilization.The research shows that: first,from 2005-2014,the capacity utilization is not high,and it is in a state of excess capacity.Second,the capacity utilization of each region is different.The capacity utilization of the eastern region is higher than that in the central and western regions,which may be due to the less government behavior and the large amount of OFDI.Third,the relationship between government behavior,OFDI and excess capacity is tested theoretically and empirically.The conclusions show that government behavior will result in a decline of excess capacity,and OFDI has played an intermediary role to alleviate domestic excess capacity.In this paper,the capacity utilization is divided further into low,normal and high three parts,and multinomial Logit model is introduced to explore the difference of the influence factors of excess capacity.It is found that the increase in fiscal expenditure will reduce the excess capacity,encouraging OFDI and increasing technological innovation is beneficial to alleviating excess capacity.On this basis,this paper puts forward some corresponding policy suggestions from the perspective of reforming fiscal and tax policies and assessment system,encouraging enterprises to invest and attach importance to science and technology.