Analysis On The Impact Of Tax Competition On Capital Flow In Guangdong-hong Kong-macao Greater Bay Area

At the beginning of 2019,the state issued the development planning outline of Guangdong-Hong Kong-Macao Greater Bay Area,and wrote the construction of Guangdong-Hong Kong-Macao Greater Bay Area into the report of the 19 th National Congress of the Communist Party of China and the work report of the government,upgrading it to the level of national development strategy.Guangdong-Hong Kong-Macao Greater Bay Area has a good foundation for building a world-class Bay area and an international level city group.To promote the cooperation among Guangdong,Hong Kong,Macao and the economic prosperity of the Greater Bay area,tax coordination is an indispensable link.However,due to the differences in economic model,tax system and cultural environment among the three regions,a series of cross-border tax focus problems arise,which will greatly hinder the flow and allocation of production factors among regions and the integration of economic development.Therefore,the study of the impact of tax competition on capital flow is conducive to building a world-class Bay area and a world-class city group,to collaborative innovation and inclusive growth of the bay area,and also can play a role of demonstration and leading nationwide.Baseded on 9 cities + 2 districts(Guangzhou,Shenzhen,Zhuhai,Foshan,Huizhou,Dongguan,Zhongshan,Jiangmen,Zhaoqing)in Guangdong-Hong Kong-Macao Greater Bay Area by combining theoretical and empirical research methods,we study the relationship between tax competition and capital flow.First of all,based on the theory of fiscal decentralization and Zodrow-Mieszkowski model,this paper studies the mechanism of the impact of tax competition on capital flow,analyzes the current situation of the development of Guangdong-Hong Kong-Macao Greater Bay Area,and discusses the impact of tax competition on capital flow from both positive and negative perspectives;secondly,this paper constructs a traditional factor including capital stock,tax competition and possible impact on capital flow The internal dynamic panel model uses the data from 2007 to 2018 in 11 regions of Guangdong-Hong Kong-Macao Greater Bay Area.The conclusions are as follows:The tax competition among major cities and regions in this area has objectively stimulated the power of capital flow in the district.Meanwhile,the manufacturers will not only consider the actual tax burden when making location decisions,but also the local infrastructure level and economic scale It will be taken into consideration.Of course,we can't ignore the problems such as unbalanced development of urban agglomerations,unclear guidance of tax preferences,and inefficient concentration of capital elements in Guangdong-Hong Kong-Macao Greater Bay Areadue to soft budget constraints,tax system conflicts,and the club effect among regions.Therefore,the policy recommendations of this paper are as follows:(1)maintain the internal adaptability of Guangdong-Hong Kong-Macao Greater Bay Area according to the tax neutrality;(2)coordinate the tax interest relationship within the region,and build a more coordinated fiscal and tax policy system;(3)use the free trade zone to open up the capital flow channel;(4)specify guiding tax preferential policies,create the policy rent of agglomeration rent dissipation,facility high-tech industry to make the transformation from "made in China" to "created in China" become true.