Long-Term Capacity in 25 Industrial Sectors: A Structural VAR Approach Based on Twenty-Five Years Evidence in China

The measure of capacity level has always been useful monitoring indicator in Engineering Management, especially in the countries like China, conducting extremely high growth in industrial sectors during last three decades. We introduce a structural VAR model in this paper to estimate long-term capacity in China´s twenty-five industrial sectors. We concluded that most of sectors experienced high capacity growth at the beginning of China´s Reform, and then changed into a moderate growth in latest years.