Does The "Business Tax Replaced With VAT Reform" Promote The Total Factor Productivity Of Chinese Enterprises?

The sustainable growth of domestic enterprise productivity is the microfoundation of a country's sustainable economic growth.Therefore,improving the total factor productivity of enterprises is not only important for promoting the transformation and upgrading of enterprises,but also achieving sustainable development of the enterprise itself,and playing a important role on achieving sustainable growth for the national economy.The transformation of the business tax to the value-added tax in the service industry(hereinafter referred to as “business tax replaced with VAT reform”)is the highlight of the fiscal and taxation system reform in recent years,and also serves as a key link to further improve the turnover tax system after the 2008 VAT reform.From January 1,2012,the central government first carried out the pilot reform of the value-added tax reform in the Shanghai transportation industry and some modern service industries,referred to as the “1+6” pilot industry,and gradually the industry that levies business tax has been changed to the industry that levies value-added tax.In September 2012,the scope of the pilot has been extended to 11 provinces and cities such as Beijing.On May 1,2016,the pilot reform of “business tax replaced with VAT reform” ushered in a comprehensive push,and the business tax has since withdrawn from the historical arena.Throughout the literature,few scholars have conducted in-depth discussions on the relationship between the “business tax replaced with VAT reform” and the total factor productivity of enterprises.Therefore,this paper hopes that by studying the relationship between “business tax replaced with VAT reform” and the total factor productivity of enterprises and excavating the internal mechanism between the two,it can not only complement and improve the theoretical results in this respect,but also provide a more comprehensive and in-depth understanding of the effects of the reform of the “business tax replaced with VAT reform” and have a strong practical significance for further deepening the reform of “business tax replaced with VAT reform”.This paper takes the 2009-2017 China Shanghai and Shenzhen A-share listed companies as the research sample.The data of the listed companies mainly comes from the CSMAR and Wind databases.The Differences-in-differences(DID)method and DEA-Malmquist productivity index analysis method are used to analyzes the impact of the “1+6” pilot industry “business tax replaced with VAT reform” reform on the total factor productivity of Chinese enterprises.For the first time,in the study of the impact of “business tax replaced with VAT reform” on the TFP,TFP was measured by DEA-Malmquist productivity index analysis method,and TFP changes(TFP)were decomposed into technological advances(techch),Pure technical efficiency change(pech)and scale efficiency change(sech),Not only to study the impact of “business tax replaced with VAT reform” on enterprises' TFP,but also to further study the impact of “business tax replaced with VAT reform” on technological progress,pure technical efficiency and scale efficiency in total factor productivity.Through the study of the text,it is found that “business tax replaced with VAT reform” will promote the improvement of the total factor productivity of the enterprise,and it will promote the efficiency of the scale of the total factor productivity of the enterprise.Through theoretical analysis and mathematical derivation,it is found that the reason for this promotion is due to the two paths of action: “business tax replaced with VAT reform ? division of labor ? scale efficiency ? total factor productivity” and “business tax replaced with VAT reform ? technological innovation ? scale efficiency ? total factor productivity”.In order to further verify the two paths of action,this paper further studies the impact of “business tax replaced with VAT reform” on its scale efficiency and total factor productivity under the difference of integration degree and R&D investment intensity,and finds that “business tax replaced with VAT reform” will significantly increase the scale efficiency and total factor productivity of enterprises with high integration level,“business tax replaced with VAT reform” will significantly increase the scale efficiency and total factor productivity of enterprises with low R&D investment intensity,providing a deeper theoretical support for revealing the impact of “business tax replaced with VAT reform” on the total factor productivity of enterprises.