Study On The Fiscal Policy To Promote The Transformation Of Industrial Structure In China

To promote the strategic adjustment of economic structure is the main direction to accelerate the transformation of the way of economic development.And the core to promote the strategic adjustment of economic is to adjust and upgrade the industrial structure.The transformation of industrial structure is significant to social development.Along with the continuous rationalization and supererogation of industrial structure,the sustainable and healthy development of economy is inevitable.Under the new normal state of the economy,China's economy in the process of development is still facing serious environmental pollution,overcapacity and many other issues.These issues,to a certain extent,restrict the sustained and healthy economic and social development.Extensively economic development mode and irrational industrial structure are the main reasons for these problems.Slowing down the growth rate,adjusting the structure and changing the driving force are the inevitable requirements for seeking stable development.Therefore,pubilc finance,as the foundation and important pillar of state governance,is supposed to play a vital role to adjust the industrial structure.Fiscal policy can affect the industrial structure by leading the resources to flow through industries.In recent years,China has begun to take steps to promote the transformation of industrial structure,especially taking good use of fiscal policy.In the aspect of fiscal expenditure,the government uses fiscal subsidies and government investment flexibly.And gradually improves the government procurement system.More expenditure focuses on the technology,energy conservation and environmental protection.Purchase funds in our country,for example,reached one trillion yuan for the first time in 2012,and overpassed two trillion yuan in 2015.The government procurement in supporting the domestic industry independent innovation,promoting enterprise technical ability and intention and carrying out the government's thoughts plays an important role.About the taxation,China mainly uses the tax benefit of turnover tax and income tax to promote the reasonable flow of production factors,thus promoting the transformation of industrial structure.For example,the reform program to replace the business tax with a value-added tax has positive effect on manufacturing upgrading and the development of modern service industry due to the cost-reduction of the intermediate investment tax.However,there are still some problems about the fiscal and taxation policy in the process of adjusting the industrial structure.For example,there have been cases of tax fraud and subsidy fraud in photovoltaic industry with the promulgation of a large number of fiscal policies Finally it is bad for the industry.New measures have been taken in 2018 to improve this situation.Therefore the fiscal policy to promote the transformation of industrial structure in China is still need to be mended.Given this,this paper focused on the transformation of industrial structure,and analyzed the mechanism of fiscal expenditure and taxation in promoting the transformation of industrial structure and put forward relevant suggestions based on the background of supply-side reform and the implement of performance management.It focused on the mechanism and the real effect that the fiscal policy put on the transformation of industrial structure.The former needs to clearify the internal logic relationship between them.The latter demands to look for the scientific indexes and then assesses the function that fiscal policy put onto the transformation of industrial structure.This is also the difficulty of this research.Using provincial panel data from 2007 to 2015,taking the advantage of the simultaneous equations model and the threshold model,it measured and tested the effectiveness that the fiscal expenditure policy and tax policy put to the transformation of industrial structure separately.On the basis of systematical analysis,we got some conclusions.Firstly,the scale of fiscal expenditure in this stage is significant to both the rationalization and supererogation of industrial structure,having negative effect on the rationalization of industrial structure and positive effect on supererogation.Specific to fiscal expenditure structure,different items of expenditure affect the two dimension of industrial structure differently.Secondly,macro tax burden or total tax revenue plays a vital role on both industrial structure rationalization and supererogation.The relationship between the former is inverted U-shaped,and the latter is U-shaped.Specific to taxation structure,different items affect the two dimension of industrial structure differently.Thirdly,control variables,such as fixed asset investment,human capital and economic development etc.,also play a considerable role in the process so that all of them can be used as the fiscal policy point,especially the fiscal expenditure.Specifically,the subject of this dissertation is the fiscal policy that could promote the transformation of industrial structure.It can be effectively split in several parts in order to make this research thought more clea.The main contents just as follows.(a)A theoretical analysis of the fiscal policy to promote the transformation of industrial structure.Firstly,it clarifies the concept and characteristics of the industrial structure and the connotation of the transformation of industrial structure,the basis of the law and the criteria of the transformation.Secondly,we calrifies the theoretical basis that why the fiscal policy could affect the industrial structure.This paper expounds the objectivity,effectiveness and limitation of financial policy in transformation of industrial structure.Thirdly,it clarifies how the fiscal expenditure and taxation affect the transformation of industrial structure.And the precondition of that step is to define which aspect of the fiscal policy is been studied in this paper.Then it analyzes the relevant factors that fiscal policy affects the industrial structure.It analyses step by step,orderly.(b)A historical analysis of China 's fiscal policy to promote the transformation of industrial structure.From historical point of view,it presents qualitative description of China's historical changes of industrial structure and fiscal policy respectively.And then discovers the correlationship between them.On this basis,we try to find out the problems that still exist in the fiscal policy to adjust industrial structure in order to lay the foundation for subsequent analysis.(c)An empirical analysis on real effect of fiscal expenditure and taxation to promote the transformation of industrial structure in China.This part tests the effect from two aspects,the expenditure and the taxation empirically.Among them,the index to measure the level of the transformation of industrial structure is the key.Taking good use of the simultaneous equations model and the threshold model,this part finally measures and tests the effectiveness that the fiscal expenditure policy and taxation policy put on the transformation of industrial structure respectively.(d)Learn experiences from typical countries and regions.Other countries or regions,such as American,Japan,Korea and Taiwan,who ever used or are using the fiscal policy to promote the transformation of industrial structure,should be found out and be classified for us to learn the experience.Mainly summarizes and compares the experiences of the countries or regions.Finally learn that locating the policy object accurately and paying attention to the coordination and cooperation among the policies and relying on the fiscal and taxation legal system to provide institutional guarantee.(e)The suggestions to consummate the fiscal policy to promote the transformation of industrial structure.Mainly includes principles that need to be abided by when consummate the fiscal expenditure and taxation policy to promote the transformation of industrial structure.They are principles of following the objective rule,coordination,applicable and timelessness.And it also includes the outline and specific path for consummtating from fiscal expenditure and taxation,and the corresponding supporting measures.In the specific path,the two are respectively carried out from the total amount and structure.Finally,it puts forward the improvement of supporting measures such as transforming government functions,deepening the reform of fiscal and taxation systems,advancing the process of fiscal and taxation legalization and strengthening coordination with other economic policies including monetary policies.