Research On The Effect Of The R&D Expenses Additional Deduction Policy On Enterprise Total Factor Productivity

As China’s economy enters a new normal,the driving force for economic growth driven by traditional factor inputs is becoming weaker and weaker,and improving total factor productivity is an inevitable requirement for transforming the economic development model and achieving high-quality and sustainable economic development.Accelerating technological progress and thus increasing their total factor productivity is crucial to national development.At present,a series of preferential tax policies have been implemented in China to accelerate the technological progress of enterprises,among which the R&D expense deduction policy is more inclusive than other policies,and in recent years,the government has continuously increased the deduction ratio to help enterprise innovation,and whether it can promote enterprises to improve total factor productivity remains to be studied.This thesis takes the A-share listed companies in Shanghai and Shenzhen from2017 to 2020 as a sample to explore the impact of the R&D expense deduction policy on the total factor productivity of enterprises,and examines the impact mechanism of the policy on the total factor productivity of enterprises,and finally explores whether the impact of the R&D expense deduction policy on the total factor productivity of enterprises varies due to the nature of property rights,the intensity of production factors,the degree of marketization,and the life cycle stage.The study found that the R&D expense deduction policy can significantly promote enterprises to improve total factor productivity.Through the analysis of the intermediary effect mechanism,it is found that the R&D expense deduction policy can promote enterprises to increase total factor productivity by promoting enterprises to increase innovation output and reduce inefficient investment.The conclusions were tested for robustness by replacing the interpreted variables and narrowing the sample size,as well as the regression model replacement method,and the conclusions were consistent.The heterogeneity test found that the policy has a more obvious role in promoting total factor productivity for non-state-owned enterprises,capital-intensive enterprises,enterprises in areas with high degree of marketization,and enterprises in the growth and mature stages.The main contributions of this thesis are:(1)This thesis deeply explores the impact of the R&D expense deduction policy on the total factor productivity of enterprises,which helps enterprises to better use the policy to promote enterprise development,and provides a reference for the government to improve the policy and accelerate high-quality development.(2)This thesis further examines the intermediary role of innovation output and inefficient investment in the process of the impact of R&D expense deduction policy on the total factor productivity of enterprises,making the policy role channel clearer and providing new ideas for future research work.