Research On Economic Efficiency Of Tax Competition Between Local Governments In China

Horizontal tax competition between local governments have largely promoted the rapid development of economy in our country,but at the same time tax competition also brings environmental damage,rent-seeking,corruption,and neglect the quality defects such as economic development,tax competition caused the loss of efficiency of economic growth in China,so how to realize the horizontally between the tax competition between local governments governance has become the focus of attention.Previous studies mostly focused on the existence of tax competition and the measurement of the degree of tax competition,but few studies analyzed the causes of tax competition and how to promote the cooperation between local governments through institutional supply.Finance is the foundation and important pillar of national governance,and tax revenue is the main source of government revenue at all levels.In addition to the steady advancement of China's regional integration development strategy,tax cooperation system should be the basic system of tax cooperation between local governments.Therefore,it is of great significance to study how to achieve effective tax cooperation between local governments.Paper first from our country after reform and opening up regional preferential tax policy and tax competition leads to the top of the system design,this paper analysis the horizontal tax competition between local governments in China causes the policy background and system,on the basis of the measuring element tax competition degree,the construction of stochastic frontier model(SFA),using 2008-2017,our country government at the provincial level panel data,using beyond logarithmic Translog production function calculation efficiency of provincial economic growth,through panel regression,analysis of negative effect of tax competition efficiency on economic growth,Finally,it constructs the framework of the tax cooperation system between local governments and corresponding supporting measures.It is found that capital tax competition and consumption tax competition have negative effects on economic growth efficiency,while labor tax competition has positive effects on economic growth efficiency.Paper builds a dominated by the central government,local government participation of transverse tax cooperation framework,the tax cooperation mechanism operation relies on a single functional tax co-operation between local governments,the organization to supervise powers granted by the central government and local government assignment together form part of the power the power source of the group,the single-function tax cooperation organization supervise layer to form,by policy makers,executive level,and coordination of regional tax collaboration.At the end of the paper,some Suggestions are put forward to promote the cooperation and standardize the tax competition among local governments.