Dong Minjie a, Liang Yongmei b, Zhang Qizi b

(a: China Credit Rating Co., Ltd; b: Institute if Industrial Economics of CASS)

Abstract: This paper estimated industrial capacity utilization, technical efficiency and equipment utilization between 2001 and 2011 based on provincial data, compared the different capacity utilizations among industries and provinces, and explored the factors affecting capacity utilization. Result of the estimate indicated that the average capacity utilization of Chinese industry during 2001 to 2011 is 69.3%. Capacity utilization before 2008 showed an upward trend, while that after 2008 fluctuated downward. In the two sub-items of capacity utilization, equipment utilization is lower than technical efficiency, thought the latter has showed obvious downward trend in recent years. In terms of industries, capacity utilization of light industry is generally higher, while that of mining industry, public utilities as well as heavy industry is generally lower. In terms of regions, capacity utilization in eastern region is much higher than the other three regions. Among the affecting factors, economic growth and marketization degree was positively related to capacity utilization significantly, while capital intensity, proportion of state-owned output value and local government investment was negatively related to capacity utilization.

Key Words: Capacity; Capacity Utilization; Technical Efficiency; Equipment Utilization; Data Envelopment Analysis


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