Research Of Economic Gap And Fiscal Policy Regulation In Beijing-Tianjin-Hebei Regions

The gap between regions is inevitable in the process of regional economic development. Moderate gap promotes rapid economic development. The gap which exceeds a certain limit will bring a range of negative effects and ultimately hinder the development of the entire region. The economic gap is mainly reflected in that the economic level of Hebei province is too far behind in Beijing and Tianjin. There is no reasonable gradient between regions, so the transfer of industries is very difficult. Economic radiation can hardly drive the development of Hebei province. Therefore, only policy can gradually promote economic development of Hebei province, narrow the economic gap between regions, finally achieve the goal of regional economic integration. This paper decomposes the economic gap, studies and explores the issue of narrowing the economic gap from the perspective of fiscal and tax policy, based on the analysis of the economic conditions in Beijing, Tianjin and Hebei province.The paper is mainly divided into two parts. The first part explores the causes of economic disparity on the basis of the status quo of economic development in Beijing-Tianjin-Hebei regions. First of all, it calculates the contribution rate of three industries and the interaction on economic disparities using the decomposition method of weighted coefficient of variation. Then, it evaluates the coordination of economic level of Beijing-Tianjin-Hebei regions through factor analysis, choosing Beijing, Tianjin. eleven cities of Hebei province as object of study, further understanding the economic disparity. The second part is fiscal and tax policy research to narrow the economic gap of Beijing-Tianjin-Hebei regions. The paper carries out the empirical research of the policy implications on economic gap in Beijing-Tianjin-Hebei regions, based on the limitations of the current system in coordinating economic development, recognizing the rational model of industrial development and the direction of institutional reform. Finally, it proposes policy recommendations to narrow the economic gap in Beijing-Tianjin-Hebei regions.