Study On The Influence Of Tax Competition On Industrial Structure

The upgrading of the industrial structure is an important part of the optimization of the economic structure of our country,and it is also the key to the transformation of the imbalance and inadequacy of the economic development.The imbalance and inadequacy of development have always been a long-standing problem in China.The adjustment of structure is an important part of the economic work in the future in the Central Economic Conference of the people’s Republic of China in 2013.The adjustment of industrial structure is of great significance to economic development,and it is also an important measure to balance steady growth and adjust structure.After the reform of the tax sharing system in 1994,the local government of our country took the performance as the appraisal index,the tax competition always existed among all levels of government,although the local government did not have the tax legislative power But can independently carry on the tax preferential,the tax return and so on policy.The tax competition among local governments will have a great influence on the industrial structure by influencing the flow of resources and investment,and the reasonable and orderly tax competition will be beneficial to the optimization of the industrial structure.The disorderly competition will not be conducive to the optimization and upgrading of the region’s industrial structure.Based on the data of 283 prefectures and cities in China from 2003 to 2016,this paper analyzes the industrial structure of tax competition,including theoretical analysis and empirical analysis.At the theoretical level,the mechanism and path of tax competition acting on industrial structure are analyzed.At the empirical level,the existence of tax competition is tested by the spatial econometric model,then the panel regression model is used to analyze the impact of tax competition on the upgrading and rationalization of industrial structure,and the research is carried out separately in the eastern and western regions.The conjecture verifies the spatial property of the industrial structure,and further analyzes the relationship between the tax competition and the industrial structure by using the spatial econometric model.The influence of structural refinement and rationalization.Based on the above analysis,the conclusion is drawn as follows: in general,tax competition can restrain the upgrading of industrial structure to a certain extent,while it can promote the rationalization of industrial structure to a certain extent.Secondly,this paper divides the whole country into three parts,east,middle and west.The result shows that the tax competition has a lower inhibitory effect on the industrial structure upgrading in the eastern region than in the central region and the western region.The reason may be that the eastern region is more developed,the ability to innovate,attract investment and so on are stronger,and the tax competition such as tax preference has little influence on it.On the other hand,the tax competition for the rationalization of the industrial structure of the central region The degree of promotion is greater than that in the eastern and western regions.The reason may be that the central region is a large province of resources.With the continuous upgrading of the industrial structure,the distribution between the resources and the employed is becoming more and more reasonable.Based on the above analysis,this paper thinks that we should implement the preferential policies of regional differential taxation,strengthen inter-regional industrial cooperation and perfect the mechanism of performance appraisal;on the other hand,we need to improve the intensity of reducing taxes and fees,and establish the coordination mechanism of fiscal and tax benefits.