Research On The Efficiency Of Government Financial Support For The Development Of China's Rare Earth Industry

This paper is derived from the National Social Science Foundation key Project(18AGL002),Jiangxi Social Science Planning Project(17GL11)and Jiangxi University of Science and Technology Graduate Innovation Project(XS2017-S075).Focusing on the main research line of government financial support for the development of rare earth industry in China,this paper chooses the analysis methods of combining theory with demonstration,qualitative with quantitative,macro and micro,combs relevant literature,theory and current situation,emphatically makes an empirical analysis of the efficiency and influencing factors of government financial support for rare earth industry development in China,and puts forward pertinent policy construction.The main research content and conclusion of this paper includes:Firstly,the study results concerned both here and abroad are reviewed from the efficiency evaluation of fiscal policy,the effect of government financial support on industrial development,and the fiscal policy of rare earth industry.Based on the theories of government intervention and market failure,externalities and strategic trade policy,the theoretical basis of government financial support for the development of rare earth industry in China is analyzed in combination with relevant theories and literature studies.The theoretical basis of the exhibition,the policy documents,the data and actuality of government financial support for the development of rare earth industry in China is objectively described and analyzed.It is found that government financial subsidy is a relatively stable way of government financial support among all kinds of financial policy tools for the development of rare earth industry.It is also the focus of national policy in the late years.The government financial subsidy fund has been growing continuously,but the efficiency of government financial subsidy for rare earth industry has not been studied yet.Based on this,the research hypothesis of government financial support for the development efficiency of China's rare earth industry and its influencing factors is put forward.Secondly,based on the four-stage model of SBM-DEA,an innovative evaluation model of the efficiency of government financial support for the development of rare earth industry is constructed.The data of 20 rare earth listed companies in China from 2010 to 2017 are selected as samples,and the efficiency of government financial support for the developmentof rare earth industry in China is empirically analyzed from a micro-perspective.The efficiency of government financial support for the front and back ends of rare earth industry and the efficiency of government financial support at different stages are compared and analyzed.The analysis results indicate that the annual average government financial support efficiency of China's rare earth industry is 1.319 from 2010 to 2017,and the annual average government financial support efficiency of 3/4 rare earth listed companies is more than 1.Financial support has a significant "incentive effect" on the development of rare earth industry in China as a whole.The government financial support efficiency of the rear end of the rare earth industry chain is higher than that of the front end.The front end mainly shows the "crowding-out effect" and the back end mainly shows the "incentive effect".The introduction and revision of the government financial support policy will help to improve the efficiency of government financial support for rare earth industry.Thirdly,based on the efficiency rating,using multiple linear regression econometric model to further analyze the main factors affecting the efficiency of government financial support for China's rare earth industry.The analysis results indicate that the intensity of government financial support and the enterprise size have significant positive effects on the efficiency of government financial support for rare earth industry at a significant level of 1%;moreover,the non-linear relationship between the intensity of government financial support and the efficiency of government financial support is excluded,which verifies that the intensity of government financial support has a positive linear effect on the efficiency of government financial support for rare earth industry,and the positive linear effect has a twoyear lag.In addition,by changing the number of explaining variables,replacing regression methods and changing sample intervals,the results of empirical analysis are tested for robustness.The results indicate that the conclusions of the research are more robust.The comprehensive study results indicate that the government's financial support for rare earth industry can make up for the inefficiency of industrial management,thus increasing the comprehensive efficiency of rare earth industry.That is to say,government financial support is a feasible way for the government to macro-control rare earth industry and promote the development of rare earth industry.Especially with sustained government financial support,the comprehensive efficiency of the rear end of rare earth industry is expected to catch up with or even surpass the comprehensive efficiency of the front end in the future,to lead the adjustment and upgrading of rare earth industrial structure.However,government financialsupport still has a certain "crowding-out effect" on a small number of rare earth enterprises,and the management efficiency of rare earth industry is declining.There is still room for improvement in the comprehensive efficiency level of rare earth industry.Based on the research results,the paper gives some target-oriented policy suggestions to increase the efficiency of government financial support for rare earth industry from the aspects of financial input intensity,government financial support object selection and government financial support policy formulation,so as to enrich and improve the theory of government financial support for the development of rare earth industry,better guide the practice of government financial support for the development of rare earth industry,and give decision reference for the government and enterprises.