Tax Competition,Technological Innovation And Industrial Structure Upgrading Of Resource-based Cities

The problem of unbalanced and insufficient development has become a shackle for sustainable and healthy economic development,and promoting the upgrading of the industrial structure of resource-based regions is an important step to change this status quo.A reasonable and orderly tax competition is the key to the upgrading of the industrial structure in resource-based regions,and if this reasonable and orderly competition is destroyed,the upgrading of the regional industrial structure will suffer a major blow.In this context,the study takes tax competition on industrial structure upgrading in resource-based cities as the main line of research,adopts literature research,theoretical analysis combined with empirical analysis,comparative analysis and other methods,and on the basis of combing the relevant literature and theories on tax competition and industrial structure upgrading,deeply explores the possible interrelationship and role of tax competition,technological innovation and industrial structure upgrading in resource-based cities.The study further analyzes the heterogeneity of the three mechanisms,and provides suggestions for building a healthy tax competition order among localities.The main research contents and findings are as follows:Firstly,the relevant theories such as public choice theory,fiscal decentralisation theory,the law of allotment-Clark,Kuznets’ law,Hoffmann’s rule of thumb on industrialisation,sustainable development theory and life cycle theory are briefly elaborated,and the relevant domestic and foreign research results are systematically reviewed in terms of the impact effects of tax competition,the influencing factors of industrial structure upgrading and the relationship between tax competition and industrial structure upgrading,technological innovation and industrial upgrading.This paper provides a theoretical and documentary basis for the study of the relationship between tax competition and industrial structure upgrading.The comprehensive analysis concludes that the research on the influence of tax competition on industrial structure upgrading is relatively weak,and no unified conclusion has been formed.Secondly,under the theoretical analysis framework of tax competition and industrial structure upgrading in resource-based cities,an empirical model of the relationship between tax competition and industrial structure upgrading and a model of the mediating effect of technological innovation are constructed to empirically test the impact of tax competition on the advanced and rationalized industrial structure of resource-based cities from a micro perspective,using the data of resource-based prefecture-level cities from 2006-2019 as a sample,as well as the role of technological innovation in the The empirical results show that tax competition inhibits the development of industrial structure in resource-based cities.The empirical results show that tax competition inhibits the upgrading of the industrial structure of resource-based cities and promotes the rationalisation of the industrial structure;technological innovation plays a mediating role in the upgrading of the industrial structure of resource-based cities.In addition,the robustness of the model results was tested by controlling for the endogeneity problem and changing the explanatory variable measures.The relationship between tax competition and industrial structure upgrading was further analysed for heterogeneity by city development cycle and region.The results show that:advanced in the eastern region is more significantly affected by tax competition compared to the central and western regions;the rationalisation of industrial structure in the central region is more significantly affected by tax competition compared to the eastern and western regions.From the perspective of urban development cycles,the negative impact of tax competition on the advanced industrial structure in growth-oriented,mature and declining resource-based cities is more obvious,while for regenerative resource-based cities,tax competition promotes the advanced industrial structure;the rationalisation of industrial structure in mature and regenerative resource-based cities is more obviously affected by tax competition,while tax competition in growth-oriented and declining resource-based cities promotes the rationalisation of industrial structure.The rationalization of industrial structure in mature and regenerative resource-based cities is significantly influenced by tax competition,while tax competition in growing and declining resource-based cities does not significantly promote the rationalization of industrial structure.On the one hand,it can express to enterprises the sincerity of local governments in developing local industries,strengthen their investment intentions and cooperate with the government in transferring or upgrading industries,and then tax competition will become a booster for industrial upgrading.On the other hand,in China’s resource-based cities,even if the local economy can be boosted in the short term through tax incentives,the negative effects are far greater than the positive effects in the long run,i.e.not only does it make the regional industry prematurely stereotyped,but also leads to excessive concentration of production capacity.According to the results of this study,relevant policy recommendations are put forward in terms of improving the performance assessment mechanism,standardising and integrating tax incentives,strengthening technological innovation and implementing differentiated governance,in order to enrich and improve the theory that tax competition affects industrial structure upgrading and provide a practical basis for industrial structure upgrading in resource-based cities in China.