Research On Inter-provincial Inter-governmental Tax Competition And Economic Growth

China's economic and social life has undergone tremendous changes since the reform and opening up.The development of all walks of life is changing rapidly and thousands of miles away,creating a miracle that has attracted worldwide attention.In October 2017,General Secretary Xi Jinping proposed in the report of the 19 th National Congress of the Communist Party of China that China's economy has moved from a high-speed growth stage to a high-quality development stage.The Central Economic Work Conference also clearly stated in 2017 that it is necessary to promote the establishment of a standard system,indicator system,statistical system,policy system,performance evaluation of high-quality economic development as soon as possible,and improve the relevant institutional environment.Some scholars have analyzed that the reason why China's economy can achieve rapid growth for many years is that the fiscal decentralization reform under China's fiscal management system has maintained a relatively effective intergovernmental competition market.Within a country,the reason why local governments can compete for economic resources is mainly because the central government delegates power to local governments,that is,fiscal decentralization.In the context of fiscal decentralization,in order to increase the total economic volume of the region,the inter-provincial governments actively participate in the local economic construction,but the resources of the region are always limited,which inevitably triggers the "brotherhood between the inter-provincial governments".Driven by the interests of the official promotion mechanism,local governments use corporate tax incentives or tax refunds as a competitive weapon to attract external resources and use them for local construction.Therefore,it is of great practical significance to objectively evaluate the effect of tax competition on economic growth around the content of inter-provincial tax competition in the context of fiscal decentralization,and to explore suggestions for tax competition policies to promote China's economic growth.In the context of fiscal decentralization,this paper reviews the basic theories of relevant literature at home and abroad,uses normative analysis and empirical analysis to propose the basic concepts of tax competition,and analyzes the transmission mechanism of tax competition affecting the economy,including adjusting the allocation of production factors and attracting domestic and foreign Capital,influence government behavior three ways,build a measurement model that affects economic growth.The article first introduces the introduction,elaborates the topic selection background and significance,research content and methods,domestic and foreign literature review,and the basic theory of tax competition and economic growth,and then discusses the economic effects of tax competition to summarize China's tax competition For the mechanism of economic growth,then analyze the inter-provincial tax competition in China in stages,and finally use statistical analysis and econometric models to verify the existence of tax competition in China,and explore the impact of local government tax competition on economic growth by region.And give relevant policy recommendations.The innovation of the article lies in the empirical analysis of the main effect of the lower tax rate of inter-provincial government tax competition in China and the object effect of differences in tax bases and financial levels in various regions,thereby verifying the existence of inter-provincial tax competition.The econometric model analyzes the impact of tax competition on economic growth by region,and creatively proposes relevant policy recommendations from the central and local level,the local and local level,and the local and people level.