Regional Disparity Of Tax Efficiency Between Different Industries

From a worldwide perspective, tax system of many developing countries, whose economic system is nowhere near perfect, is in constant adjustments or reforms. In this context, the efficiency of tax collection in developing countries has been the focus of the government and scholars. Since the reform and opening up, China's tax system has also experienced a variety of overall or partial reforms. Whether it is the second industry or tertiary industry, along with China's sustained rapid economic growth, its tax revenue rose significantly. However, the total inter-region differences in tax revenue being great, tax of different industries being unequal, tax evasion phenomenon lasting for ever, the questions come to us that how tax revenue depends on the total economy as well as other collection factors, and how to measure the production level of tax revenue. As a result, research on the issue of tax efficiency tends to be particularly important.Through a literature review of previous research, we found that traditional methods simply focus on costs or outputs and rarely analyze the efficiency by combining these two points together. Though there is domestic literature using production frontier approach, yet most of these works choose non-parametric production frontier analysis, leaving the parametric method to which it is attached more economic significance rarely involved. This article is going to use stochastic production frontier approach, making it a starting point and highlight of our research, to estimate the tax efficiency of China.On this basis, in chapter 3 we first established a stochastic production frontier model in the translog form on foundation of certain hypothesis tests. Using the estimated parameters, we then made a TFP growth decomposition which showed that among all factors in TFP growth, technical progress played a dominant role while scale efficiency and technical efficiency of tax collection demonstrated a negative effect.In chapter 4 we analyzed the influencing factors of tax efficiency in various regions of China with the SFA model by Battese and Coelli in 1995. It was indicated that:Factors like revenue-raising proportion accounted by national tax department had positive effects on tax efficiency while the density of private enterprises, export tax rebates and so on played a negative role in it.In order to compare inter-area and inter-industry differences in tax efficiency, chapter 5 estimated the regional tax efficiency by means of SFA in the aspects of different areas and different industries. It could be seen from our research that, the coastal area's tax efficiency value was significantly higher than that of the interior area. Of all areas, tax efficiency of the secondary industry had an upgoing trend while that of the tertiary industry kept time-invariant. The secondary industry had relatively high tax efficiency, mainly because its concentrating tax base was easy to manage. In contrast, the tertiary industry was always involved with scattered sources as well as uneven scales, making its tax efficiency lower than either the secondary industry tax efficiency or the total tax efficiency in most provinces.On the basis of the above research, this thesis finally came to the main conclusions, and put forward some suggestions from three angles inclusive of economic development, tax office construction and tax system adjustment, in order to improve the tax efficiency as well as tax revenue in all areas and all industries.