Abstract：
By constructing a theoretical model, it is found that economic fluctuation influences capacity utilization and both show procyclicality. Based on the provincial panel data in China from 1999 to 2014, this empirical study finds that in general, economic fluctuation and capacity utilization shows coupling characteristics and procyclicality. In other words, economic fluctuation and capacity utilization act in coordination to each other. A further analysis of separate samples reveals that there is coupling relationship between economic fluctuation and capacity utilization in the labor-intensive, capital-intensive industries and the industry development before the financial crisis. On the contrary, for technology-intensive industry and the industry development after the financial crisis, the relationship is a deviation or counter-cycle one. This means that during the course of overcapacity governance, a rational and objective view should be given to the relationship between economic fluctuation and capacity utilization.
FENG Wei.The Analysis of Coupling Between Economic Fluctuation and Capacity Utilization: An Empirical Study based on Chinese Provincial Panel Data[J] Economic Survey, 2018,V35(3): 82-89
2018 
