Research On The Impact Of Tax Incentive Policies On The Productivity Of China’s Steel Enterprises

As the basic industry of my country’s economy,the iron and steel industry is an indispensable role in the process of my country’s industrialization and modernization,and has played a pivotal role in the rapid development of my country’s economy.In recent years,my country’s steel industry has made great progress,but there are still a series of problems such as low production efficiency,low industrial concentration,unreasonable industrial layout,overcapacity,high dependence on foreign iron ore,and weak technological innovation ability.Therefore,as one of the means of the government to support the industry,the preferential tax policy,its specific role in the steel industry is worthy of study.This paper firstly summarizes the relevant literatures on tax preference theory,empirical research on domestic and foreign tax preferential policies,related research on the steel industry,related research on the measurement of enterprise productivity and its influencing factors,and related research on the impact of tax preferential policies on enterprise productivity.The historical evolution of China’s steel industry and the main preferential tax policies are discussed and analyzed.Based on literature review and analysis of practical problems,then analyze the mechanism of government preferential tax policy from a theoretical level and put forward two hypotheses: H1: Government preferential tax policy can stimulate the improvement of total factor productivity of iron and steel enterprises;H2:Compared with the income tax preference,the value-added tax preference has a stronger incentive effect on the productivity improvement of steel enterprises.Therefore,this paper uses the tax survey data of iron and steel enterprises from 2008 to 2011 to empirically test the two hypotheses proposed in this paper,and further explores the tax incentives.Whether the effect of policies on firm TFP varies by region and firm nature.The research results show that:(1)the government’s preferential tax policies have significantly improved the total factor productivity of iron and steel enterprises;(2)compared with income tax incentives,value-added tax incentives have a stronger incentive effect on the productivity of iron and steel enterprises;(3)the government’s incentives The preferential valueadded tax policies have promoted the total factor productivity of iron and steel enterprises in the eastern,central and western regions,with the greatest impact on the eastern region.Total factor productivity has a significant promoting effect,among which state-owned enterprises have the greatest impact.