An Empirical Study On The Relation Between Macro Tax Burden And Economic Growth Of Hebei Province

Macro tax burden and economic growth rate of Hebei province are lower than that of the coastal areas such as Jiangsu Zhejiang Shandong and Guangdong province,despite of their parallel trend.What kind of relation between the two indicators exists? Could it possible to promote economic growth by upgrading macro tax burden?After overview of literature on relation between macro tax burden and economic growth, quantitative statistics is employed in this paper to describe taxation and economic performance in Hebei province.And then it traces the causes of lower macro tax burden in Hebei province in three aspects:tax resources,tax structure and industrial structure.This paper concludes that taxation and economic performance in Hebei province have an exclusive and stable equilibrium relation in the long term through co-integration test.Result of Granger causality test shows that there exists a Granger causality between economic growth and taxation growth in the later one to four years.Linear Regression function is established to verify the positive correlation between the two.In effect,one percentage point hike in macro tax burden could result in one point four two three percentage increase of economic growth rate.Based on the analysis,this paper assumes making steady economic progress in Hebei province could be achieved by rising macro tax burden,which could also be realized with the process of optimizing local economic structure by the measures of optimizing tax structure, upgrading industrial structure and promoting areas economic coordination.