Empirical Research On The Relationship Between Tax Revenue And Economy Growth Of Fujian Province

The growth of tax revenue as an important factor for economic growth and the main results, the relationship between them is always an important topic in the field of theoretical research. Since the reform of the tax system in 1994, Fujian Province, the economic situation is well, the tax revenue has maintained rapid growth, but the tax revenue growth there has also been a lack of coordination of regional development, the tax revenue growth faster than the speed of economic development and other issues, these actors have restricted the sustainable economic development in Fujian province. In this study, through the establishment of the vector error correction model and the static and dynamic panel data model to study the relationship between tax revenue and economic growth in Fujian Province, Fujian Province, the tax revenue and economic growth to provide a theoretical basis. The results of the study show that:(1) In Fujian province in recent years, the overall tax burden level is rising, the tax elasticity and tax growth faster than the growth rate of GDP. The establishment of the province tax income is mainly from the more developed Xiamen, Quan Zhou and other coastal cities. And tax between regions and the level of economic development is not balanced, high levels of Taxation in developed coastal cities the level of tax burden is not the highest, the city tax burden level low level of taxation is not necessarily the lowest Fujian province prefecture level city tax elasticity also showed irregular change, but on the whole the tax elasticity is greater than 1, the growth rate of tax revenue growth of over GDP.(2)Through the establishment of the vector error correction model between economic growth and tax revenue impact on the two of the long-term equilibrium relationship and short-term dynamic relationship between the. Long term equilibrium equation shows that Fujian province tax elasticity is 1.287, namely the tax revenue grew aster than economic growth, significant level and high GDP, indicating gross domestic product has great effect On the tax revenue; tax revenue volatility equation shows that if the deviation from the gross domestic product and the GDP relationship of long-term equilibrium level in the short term. To adjust to the equilibrium position, GDP growth relative to the growth of tax revenue is more stable, not easily affected by other factors, tax income is too high or too low will affect the change of gross domestic product.(3) In the static panel data form a mixed regression model, fixed effect model, the random effects model of two-way fixed effect model,4 kinds of static panel data model, through the comparison and analysis of the model, the final choice of two-way fixed effect model. To establish a dynamic panel data model the System GMM Estimation model. At the same time, from the relationship between the generalized moment estimation of two-way fixed time effect and system level of tax revenue and economic growth of 74 county-level city model study of Fujian province. Through the establishment of two models to explain the regression parameters can be fixed assets, the total retail sales of social consumer goods of urban residents as the main influencing factors of GDP total compensation has positive effect on the level of tax revenue, promote tax growth; urbanization rate have a negative impact on the level of tax revenue, behind the visible in Fujian province the urbanization level is not conducive to promoting economic development.