Classification of Overcapacity and Implications for Governance

LIANG Yongmei

doi:10.19979/j.cnki.issn10082689.2023030075

Volume 39 Issue 6

Dec. 2023

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Article Navigation > Journal of University of Science and Technology Beijing ( Social Sciences Edition) > 2023 > 39(6): 754-763

LIANG Yongmei. Classification of Overcapacity and Implications for Governance[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2023, 39(6): 754-763. doi: 10.19979/j.cnki.issn10082689.2023030075

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LIANG Yongmei. Classification of Overcapacity and Implications for Governance[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2023, 39(6): 754-763. doi: 10.19979/j.cnki.issn10082689.2023030075

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Classification of Overcapacity and Implications for Governance

doi: 10.19979/j.cnki.issn10082689.2023030075

LIANG Yongmei^{1, 2}

1.
Institute of Industrial Economics of CASS, Beijing 100006
2.
University of Chinese Academy of Social Sciences, Beijing 102488

Received Date: 2022-12-03
Publish Date: 2023-12-25

Abstract

Abstract

Overcapacity can be roughly classified into three types: frictional overcapacity, cyclical overcapacity and structural overcapacity according to the duration, scope of influence and severity of overcapacity. The urgency of different types of overcapacity and the key methods to address them should also be differentiated. Frictional overcapacity is always temporary overcapacity caused by the time required by the supply and demand parties to search for information, commodity transactions, as well as incomplete information and strategic behavior of enterprises. It influences fewer industries with a low degree of overcapacity and a short duration, and should be intervened as little as possible, mainly through improving market construction and other means when necessary. Cyclical overcapacity refers to the overcapacity caused by fluctuations in economic operation and changes in macro-control policies, often involving multiple cyclical industries. The degree of cyclical overcapacity is relatively high and may last for several years, so it should be properly intervened through cross cycle adjustment policies. Structural overcapacity refers to the overcapacity caused by improper implementation of industrial policies, transformation of demand structure, change of production technology. It may occur in a single or multiple industries and should be addressed through comprehensive measures including supply-side structural reform and demand-side management.
- overcapacity,
- frictional overcapacity,
- cyclical overcapacity,
- structural overcapacity

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References

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