Correlative Analysis Of Tax Revenue Income And Economic Growth In Liaoning Province

Economy is the basis of the tax, economic growth determines the growth of tax revenue,tax counterproductive in economic, this is a general law between economic growth and taxrevenue. The correlation between tax revenue and economic growth has always been aconcern of theorists, however, the correlation between tax revenue and economic growth willexhibit different characteristics because of the different times and different regions. Liaoningprovince is a China’s heavy industry base, it plays a pivotal role in the economic developmentof the northeastern region. With the sustainable economic development in Liaoning province,the tax revenue also achieves a stable growth. But does it have a coordinated developmentbetween tax revenue and economic growth in Liaoning province? The purpose of this article isto conclude the main characteristics and existing problems between tax revenue and economicgrowth in Liaoning province through the comparative analysis and empirical analysis, revealsthe intrinsic link between tax revenue and economic growth, and puts forward policyrecommendations to promote the coordinated development of economy and tax revenue inLiaoning province, provides reference and basis for making the decisions on the developmentof economy and tax revenue in the future.The thesis consists of the following four sections:The first part reviews the theory of taxrevenue and economic growth. First of all, the article briefly expatiates on the theory of taxrevenue and economic growth, Secondly, the system combs the Adam Smith, Keynesianeconomics of tax revenue and economic growth theory；The second part mainly analyzes thecorrelation of tax revenue and economic growth in Liaoning province. First objectivelyanalyzes the tax revenue and economic growth and other related variables in Liaoningprovince, and take the development trends of these variables to have a illustratedcomparative analysis with the country and other provinces and cities on the eastern economicbelt; Secondly, using the econometric model to take empirical analysis on the correlationbetween tax income and GDP, tax revenue and three industries, and Barrow model-based,using quantitative analysis method to estimate the optimal level of macro tax burden in Liaoning province；The third part reveals existing problems between the tax revenue andeconomic growth in Liaoning province according to the comparison of the above analysis andempirical analysis conclusion, and points out that the impact of these problems；The fourthpart puts forward the corresponding countermeasures and Suggestions based on the conclusionof the empirical analysis and the problems.