The Influence Of Income Tax Rate Reduction On TFP

Since the reform and opening up,China's economy has continued to grow at a high speed.With the entering of the new normal period,China's economy will shift from high-speed growth to high-quality development.The sustainability of economic development has attracted much attention.Total factor productivity is an important factor affecting economic growth.At this stage,the government vigorously promotes structural tax reduction to achieve high-quality economic development.Whether the tax reduction policy can improve TFP and the mechanism of its effect on TFP are the focus of this paper.From the micro perspective,this paper uses the exogenous event of income tax rate reduction in 2008 corporate income tax reform to test the impact of tax reduction policy on total factor productivity of enterprises and discuss its mechanism.First of all,based on the review of domestic and foreign literature,this paper makes a theoretical analysis and hypothesis on the impact and mechanism of the reduction of corporate income tax rate on the total factor productivity of enterprises,and holds that the reduction of income tax rate can improve the total factor productivity of enterprises,and improve the efficiency of resource allocation from the inside and outside of enterprises by increasing the R&D investment and human capital investment of enterprises To improve the total factor productivity of enterprises from two aspects.Secondly,this paper selects the reLeverant data of A-share listed companies in 2002-2015 to measure and analyze the change of TFP of listed companies,and to a certain extent,it proves that the reduction of income tax rate can improve the TFP of enterprises.Then this paper takes the enterprises with reduced income tax rate as the experimental group and the enterprises with constant or increased income tax rate as the control group to build a double difference model(did)to evaluate the impact of reduced income tax rate on total factor productivity.Through the registration address,financing constraints and the ease of tax avoidance,this paper discusses the impact of income tax rate reduction on heterosexual enterprises.On the basis of parallel trend test,change the measurement model(psm-did)and eliminate the interference of other events for robustness test.Then,the intermediary effect model is used to test the impact of corporate income tax rate reduction on TFP from the perspective of R&D investment,human capital investment and resource allocation.It is found that the reduction of enterprise income tax rate significantly increases the R&D and human capital investment of enterprises,optimizes resource allocation,and improves the total factor productivity of enterprises.Finally,on the basis of the summary of the full text,the paper puts forward policy suggestions to improve TFP.