Study On The Impact Of VAT Withholding Tax Refund Policy On Total Factor Productivity Of Enterprises

The 19 th Party Congress pointed out that in order to realize the conversion of the economy from rapid development to a high-quality development,“quality first,efficiency first ”should be maintained,and all-factor productivity should be increased in an all-round manner.At this critical juncture of driving high-quality economic growth,how to rely on technological progress,optimization of resource allocation ratio,national economic restructuring and other means to improve total factor productivity and obtain more output with less input has become an important realistic issue facing the country.As one of the main levers for the state to regulate the macro economy,taxation is an essential way to solve the difficult problems of economic development.In the recent years,a sequence of tax reducing measures has been imposed by the government have provided new ideas and new thoughts for the country’s economic development.On June 27,2018,multiple relevant authorities jointly promulgated the Notice on the Tax Policy Relating to the Refund of VAT Retained Tax Credits in Some Industries in 2018,which is one of the important elements of the institutional tax reduction policy,and it is important to study the impact of the VAT retained tax credit refund policy on the TFP of enterprises so as to enhance the quality of the economic growth and perfect the tax reduction policy.Based on it,this thesis explores the mechanism of the role of VAT retained tax credit refund on the total factor productivity of enterprises through the perspective of mediating variables such as R&D investment,level of specialisation and investment scale,using fiscal 2018{70} as the policy context.By combing the existing literature,this thesis first discusses the impact path of the VAT tax retention credit policy on the total factor productivity of enterprises at the theoretical level,then theoretically elaborates the tax retention credit policy,total factor productivity and their related relationships,followed by constructing a difference-in-difference model using the "quasi-natural experiment" of the VAT tax retention credit policy piloted in 2018.Then,using financial stats for A-share listed enterprises in the Shanghai-Shenzhen stock exchanges during 2010-2019,we empirically performed an analysis of the effects of the enforcing tax credit policy on the total full productivity of companies,and investigated the impact of tax preferential policies on boosting corporates’ full factor productivity from the medial viewpoint of the distribution of labor,R&D investment,and investment scale by establishing the intermediary effect model.The results indicate the empirical results show that:(1)the implementation of VAT tax credit policy can significantly increase the total factor productivity of enterprises;(2)the tax credit policy has a significant mediating effect on the total factor productivity of enterprises through the mediating variable of R&D investment;(3)the tax credit policy can induce enterprises to expand the scale of investment and increase the level of specialization,thus inhibiting the growth of total factor productivity;(4)the tax credit policy has a significant mediating effect on the total factor productivity has a significant mediating effect.The promotion effect of tax credit policy on enterprises’ total factor productivity varies according to the nature of enterprises’ property rights,scale and geographical differences,and the stimulating influence of tax preferences on total element productivity of SOEs,large companies and companies in the Eastern and Middle areas are more powerful.