Research On The Influence Of Tax Competition On The Upgrading Of China’s Industrial Structure

Industrial upgrading as an important part of economic structure optimization,plays a decisive role in the current economic transformation and development.In the context of China’s economic development into the new normal,the contradiction between the industrial structure is particularly prominent.The Central Economic Work Conference for the first time put forward the general policy of "steady growth,promoting reform,adjusting the structure and benefiting people’s livelihood" in2013,and formally formulated the "structural adjustment" as the focus of future economic development.Tax competition as an important means of local government regulation and control of the economy,plays an important role in the regional industrial structure transformation and upgrading.So how does tax competition affect the transformation and upgrading of industrial structure? Is there a threshold effect and tax difference between them? In view of the above problems,it is of great theoretical and practical significance to optimize the industrial structure of China and formulate the local tax competition strategy between local governments and promote the sustained and healthy development of the economy.On the basis of combing the literature and related theories of tax competition and industrial structure at home and abroad,this paper systematically analyzes the current tax competition and the current situation of industrial structure and the mechanism between them.Based on the existing public data and the main means of tax competition,the spatial measurement model is used to test the existence of intergovernmental tax competition.By collating the tax competition data of 31provinces(excluding Hong Kong,Macao and Taiwan)Spatial self-correlation analysis is carried out by means of spatial measurement software Geo Da,which describes the spatial agglomeration characteristics of macro tax burden in each province.After the existence test of tax competition,the conclusion is that the current tax competition is imitation tax competition strategy.Then,in order tomake up for the shortcomings of the single point of time,this paper analyzes the data of 2010-2014 respectively,and obtains the imitative nature of tax competition.Based on the data of 420 sets of tax competition in 31 provinces and cities in China from 2001 to 2014,the tool variable method is used to estimate the endogenous problem.The results show that:(1)from the total tax revenue point of view,the tax competition restricts the transformation and upgrading of China’s industrial structure.(2)from the tax structure,the value-added tax competition to promote the transformation and upgrading of industrial structure;corporate income tax competition is restricting the transformation and upgrading of industrial structure.On the basis of this,the threshold effect of the local government tax competition on the transformation and upgrading of the industrial structure is verified by the economic development level(per capital GDP)as the threshold variable and the construction of the panel threshold model.The results show that at different stages of economic development,Industrial structure transformation and upgrading of different effects,with non-linear characteristics.(1)from the total point of view,the tax competition restricts the transformation and upgrading of China’s industrial structure,through the threshold test found that there is a single threshold and the impact of the effect of a "monotonically decreasing" trend,that is,when the level of economic development across the threshold,the tax Competition on the upgrading of industrial structure will be eased.The effect of tax competition on the upgrading of industrial structure is stronger in the area where the per capital GDP is lower than 19876.63 yuan(threshold value).In the area where the per capital GDP is higher than 19876.63 yuan,the restriction effect is weakened.(2)From the structure point of view,the impact of tax competition on the industrial structure of the impact of the existence of significant differences.Value-added tax competition to promote industrial restructuring and upgrading,through the threshold test found that there are double threshold and the impact of the effect of a "monotonically decreasing" trend,that is,per capital GDP below 16456.90 yuan(the first threshold)of the region,tax competition on the industrial structure The promotion of taxation has a greater role in promoting;in per capital GDP between 16456.90 yuan and 68,247.77 yuan(the second threshold)between the region,the tax competition on the promotion of industrial structure to enhance the role of weakened;per capital GDP higher than68,247.77 yuan The impact of this kind of weakening effect is further highlighted.The enterprise income tax restricts the transformation and upgrading of industrial structure,and finds that there is a single threshold and the effect effect is "monotonically increasing" by the threshold test,that is,inthe area where the per capital GDP is lower than 20052.32 yuan(threshold value),Tax competition on the industrial structure of the role of the constraints of the weak;in per capital GDP higher than20052.32 yuan in the region,the tax competition on the industrial structure of the regulatory role is further highlighted.Subsequently,the eastern region was selected as a sub-sample for a series of robustness test.Finally,the author puts forward some relevant policy suggestions on how to regulate the tax competition between local governments and promote the transformation and upgrading of regional industrial structure in China.