The Study Of Inter-regional Tax Competition From The Angle Of Coordinating Regional Economic Development

Since the reform and opening policy implemented, the local government gradually had its relatively independent economic interest in the reform process of the financial system. To stimulate its local economic growth, local government has launched the keen tax competition. The inter-regional tax competition has played a positive role in enhancing the government operating mechanism and driving economic growth. Simultaneously, the regional differences in natural endowment are remarkable as well as central policy support, the inter-regional tax competition also further intensified imbalanced development of regional economy in our country. The basic condition of remarkable regional differences in our country as well as the current situation of imbalanced development of regional economy let us probably consider that how to standardize and guide effective inter-regional tax competition through the system reform, system change and policy making in order to set a sound regional developmental pattern and finally coordinate regional economic development overall, which also is a significant developmental issue that should be solved at present. On the "two sessions" held in the spring of 2010, "thoroughly implement the overall strategy of regional development", "Seize the chances closely that the China--ASEAN(Association of Southeast Asian Nations) Free Trade Area has been established in an all-round way and summit of the Shanghai Cooperation Organization was convened, and actively enhance the regional cooperation" etc. were written into government work report. So the issue of coordinated development of the regional economy got most of the attention and was one of the hot issues discussed by representatives. Therefore, based on the current situation in our country and absorbing the fiscal decentralization theory, tax competition theory, regional development theory and new economic geography theory etc., this paper analyzed the regional development influenced by the inter-regional tax competition under central policy support and offered suggestion about coordinating regional economic development, which will expand and deepen the domestic and foreign research, as well as provide fundamental basis for coordinated development of the regional economy in China. The study has important theoretical and practical significance.With the general thought of "putting forward an issue(research background)--analyzing the problem(effects analysis)-solving the problem(policy and suggestion) and combining the method of abstract analysis with concrete analysis, the theoretical analysis with empirical analysis, this paper probes into the issue that how to promote the coordinated development of regional economy in our country by standardizing the behavior of inter-regional tax competition and on this basis put forward the relevant policy and suggestion through analyzing the gap in economic development among region in depth and econometric research in inter-regional tax competition.This paper is mainly divided into six major parts to conduct an all-sided in-depth analysis and summary about inter-regional tax competition and coordinated development of regional economy.The first chapter is an introduction, which is a general elaboration, including research background and significance, the domestic and foreign documents overview, research contents and method and so on.The second chapter is the theoretical outline of the inter-regional tax competition, which mainly introduces the relevant theoretical foundation of the inter-regional tax competition, defines the concept, nature and mode of the inter-regional tax competition, analyzes the effects of inter-regional tax competition from the angle of regional economic development.The third chapter is the cause and development of inter-regional tax competition in our country as well as the principal characters of inter-regional tax competition presenting in the process of regional economic development.The fourth chapter is the empirical analysis of regional economic development that influenced by the inter-regional tax competition.The fifth chapter puts forward the related policy and suggestion from the angle of central government and local government.The sixth chapter is a summary, which extracts the major point of this paper and finds the innovation and deficiency.For the region having the comparative advantage, the key research of this paper is to find the role played by the inter-regional tax competition in widening the gap between regions in terms of economic development and to find how to coordinate regional development by standardizing the behavior of inter-regional tax competition. The empirical analysis of regional economic development influenced by inter-regional tax competition in our country is the difficulty of this paper. There are some innovations in this paper. First, most of scholars only analyzed the issue of inter-regional tax competition on the basis of the fiscal decentralization theory, tax competition theory, regional development theory. However, based on the established research, this paper absorbed the new economic geography theory and thoroughly analyzed the cause of inter-regional tax competition in our country as well as the principal effect on regional economic development made by inter-regional tax competition. Second, in order to make the paper persuasive, the author use model and data in empirical analysis. Third, this paper analyzed the issue intuitively by quantifying the behavior of inter-regional tax competition in target selection. There also exist some deficiencies in this paper. First, just because of the unity of statistical classification in statistic yearbook, the age of statistic data is limited. In addition to this, some data can't be directly obtained, others need to be modified. Therefore, It is unable to make a thorough analysis on regional economic development affected by inter-regional tax competition in our country. Second, there are many special operational policy measures to coordinate regional economic development, including financial policy, monetary policy, income policy, industrial policy and so on. the focus of this paper is on tax policy, which gives top priority to what is the most important. But on the whole, it's still one-sided. Third, this paper can't make a thorough analysis on the relation between inter-regional tax competition and regional economic development at the result of limitation of the data and research approach. Besides, because of the limitation of data selection, this paper just take some representative targets into research, not considering other targets.