China's Tax System Reform And Regional Disparities Research

Since reform and opening-up, the whole economy in China has got lasting but fast growth, with which regional economy developed lopsided. Especially after the 1990's, there was a trend in regional economic development that regional disparity enlarged increasingly. If the economic gap among the areas lasts for a long time or is sizeable, it isn't not only in favor of the performance of whole economy and long-time growth, even it will possible cause the country or national division. It is of great significance for China's lasting development and social stability to seek the cause of regional disparity to decrease regional inequality.The topic on the regional disparity has been researched by scholars at home and abroad from different angles. Relatively speaking, institutional changes and reform measures have not been weight in the field explaining regional disparity, especially the impact which tax-division system reform in 1994 has on the regional gap. This thesis is based on the forefathers' research results, utilize the economic growth theory, set up the dynamic model of regional economic development in frame of the general equilibrium, and analyze the impact which tax-division system reform gives on regional inequality combined with econometrics from the angles of the relation between fiscal ability and regional economic growth and the relation between the difference of taxation burden and regional economic growth. We find : (1) From reform and opening-up to now, the regional disparity in China demonstrates obvious rising after lowering that before the 1990's, regional disparity was shrinking constantly; and after the 1990's, regional disparity was enlarged increasingly.(2) Transfer payment system and informal fiscal revenues after tax-division system reform have enlarged the gap of the per capita fiscal ability among the regions, which lead to the expansion of the gap of regional disparity.(3)Taxation system reform in 1994 which tax-division system reform in 1994 was based on aggravated the differences of tax burden ,leading to the the expansion of the gap of regional disparity.According to the analysis above, aiming at the deficiency of tax-division system reform in 1994, the thesis puts up with advises that improve tax-division system reform to decrease the gap of regional economy from the angles of standardizing transfer payment, further tax system reform and informal fiscal revenue. At last, the thesis provides the problems that would be researched : (l)Utilizing Shorrochs' sharp value decomposes the degree that tax-division system reform in 1994 had the impact on the regional disparity .(2)Testing the influence which the regional disparity at present has on whole economy in China through the demonstration.