| Horizontal tax competition refers to the tax competition between provincial governments,in the environment of tax competition between provincial governments,in order to maximize their benefits, provincial governments abuse legal tax preference or illegal tax competition, competition appears excessive and disorderly, non-standard.Provincial governments conducts horizontal tax competition,on one hand it's beneficial to the regional economic growth,on the other hand it may reduce tax revennue and affect regional economic growth,therefore the influence of horizontal tax competition on regional economic growth is indefinite.Under the circumstances where social justice is promoted,it is of great necessity to study the relationship between tax competition and harmonious regional economic growth as well as regional economic disparities.In China, horizontal tax competition is dominant form of domestic tax competition,whose influences are extensive.Factors which influence regional economic disparities are composed of direct and indirect factors.At present,provincial governments promote local economic development through horizontal tax competition,however the role that horizontal tax competition plays in regional development disparities is uncertain.The thesis focuses on exploring mechanism of tax competition influencing regional economic disparities and empirically analyzing the effects of current tax competition on regional economic disparities in China. The thesis firstly attempts to classify the tax competition into initial tax competition and passive tax competition,and then measures the level of each type by covergence analysis and regional economic disparities by Theil Index and Gini Index,finally analyzes the relationship between tax competition and regional economic disparities by econometric model.The thesis proposes policy recommendations according to the relationship mentioned above.The thesis is divided into 6 parts as follows:Chapter 1, Introduction.Background,ideas,methods,structure, innovatitions and existed defects are introduced. In the section of Concept explanations,market competition,government competition,fiscal competition expenditure competition and tax competition are listed and differentiated,initial and passive tax competition are focused on.Chapter 2, Literature reviews and Concept explanations. In the second section latest domestic and foreign literature is reviewed.lt is composed of connotations of horizontal competition,methods of horizontal competition,current situation of tax competition in China and the relationship between tax competition and regional economic disparities.Chapter 3, Theoretical analysis on tax competition and regional economic disparities.The section is composed of Mechanism of the influences of tax competition on regional economic disparities and Regional economic effects of tax competition.Through the analysis of incentives to regional economic development and specific influence factors of regional economic disparities,the thesis summarises the mechanism into 3 points:absolute reduction of tax burden,relative difference of tax burden and other influences.finally,chart of mechanism is drawn.Chapter 4, Study on the measurements of horizontal tax competition and regional economic disparities.Measurements of regional initial tax competition,aggregate initial tax competition,passive tax competition,aggregate passive tax competition and aggregate tax competition are presented.Theil Index and Gini Index are used in the measurements of economic disparities.Chapter 5, Empirical analysis on relationship between horizontal tax competition and regional economic disparities.The thesis firstly presented covergence analysis method and then group all the provinces by economic development,regional GDP structure,regional industrial structure and regional fiscal expenditure,finally measures the level of initial tax competition and passive tax competition from 1997 to 2007.In the section of empirical analysis,the author draws conclusion that initial tax competition is beneficial to reducing regional economic disparities,and passive tax competition tends to enlarge regional economic disparities through panel analysis of relationship between tax competition and regional economic disparities;and draws another conclusion that the current horizontal tax competition in China is beneficial to reducing regional economic disparities through analysis of the relationship between aggregate regional economic disparities and aggregate tax competition.Chapter6, Policy Recommendations about regularizing horizontal competition.The thesis proposes several related policy recommendations through quantitive and qualitive research:encourging'initial tax competition'properly; appropriately restricting and accurately coping with'passive tax competition'; efficiently regularizing aggregate tax competition environment. |
