The Influence Of Resource Taxation Reform On Resource Curse

The notice of comprehensively deepening resource taxation reform,released by Ministry of Finance and State Administration of Taxation on May 9,2016,started comprehensive resource tax reform.Not only reform taxation methods from quantity to price,but also rationalize taxes and charges to set up fair,reasonable and effective framework of resource taxation.As a major natural resources miner,China is also a big consumer.The effective use of natural resources play an important role in economic and social development.Evaluation of its effectiveness may be of great reference value to related industries,besides its own implementation and improvement.A large number of domestic studies found resource curse in our country and try to analyze the mechanism.But few literatures have noticed the impact of resource tax reform on resource curse,while none used empirical research.I take the resource tax reform of crude oil and gas,started in Xinjiang on June 1,2010,as quasi-experiment.Based on the panel data of 31 provinces for the period of 2000-2015 in China and the difference-in-differences approach,this paper aimed at exploring the impact of the resource tax reform on the resource curse.The result shows while the resource tax reform has a positive effect on the economy as a whole,it had blocked local economic growth in areas where resources curse existed.And further empirical research explicit that as the resource taxation sharply increased,distorted the local government behavior,intensified resources exploitation,and exacerbated the resource curse.According to the empirical results,I give some policy suggestion for the resource taxation reform.