The Influence Of Tertiary Industry Agglomeration On Local Tax Revenue

China’s late-comer advantage and demographic dividend effect are gradually weakening,and the internal driving force of economic growth is slightly insufficient.At the same time,the problem of unbalanced development between regions is further aggravated,and there is a large gap in local tax revenue,which is not conducive to equal access to public services.Therefore,it is necessary to further tap the driving force of economic growth under the new normal,narrow the regional development gap,ensure local fiscal and tax revenue,and realize the transformation of economic development to high quality.At present,the global economy is undergoing a transformation from "industrial economy" to "service economy".The development momentum of the tertiary industry in China is very strong,and it has become a driving force of economic growth that cannot be underestimated under the background of the new normal economic operation.The agglomeration effect of the tertiary industry has gradually become prominent,especially in the southeast region of China.Therefore,this paper mainly studies the influence of tertiary industry agglomeration on local tax revenue from the perspective of total tax revenue and tax burden.First of all,based on relevant theories of industrial agglomeration and tax,this paper analyzes the influence mechanism of tertiary industry agglomeration on local tax from the theoretical level,and makes a correlation analysis on the status quo of tertiary industry agglomeration and local tax.Secondly,by constructing a two-way fixed effect model,this paper conducted baseline regression and robustness test on 30 provincial administrative regions from 2007 to 2019,and reached the conclusion that "tertiary industry agglomeration has an obvious promoting effect on the total local tax revenue and tax burden,and the promoting effect will be further strengthened with the growth of time".According to the heterogeneity analysis of southeast,central,western and northeast regions,it is concluded that "tertiary industry agglomeration has a significant promoting effect on the total amount and tax burden of local taxes in southeast and western regions,while the promoting effect on the total amount and tax burden of local taxes in northeast China is not significant or invalid,and the promoting effect on the total amount and tax burden of local taxes in central China is not significant or invalid.Furthermore,the mechanism analysis is carried out with the adjustment variable of industrial structure upgrading,and the conclusion is drawn that "with the further upgrading of local industrial structure,the influence of tertiary industry agglomeration on the total amount of local tax revenue and tax burden will be further strengthened".Finally,on the basis of the conclusion of this paper,in order to realize the local economic growth while ensuring the local tax revenue and improving the local tax burden,some concrete measures and suggestions are put forward.