Research On The Impact Of Tax Competition On China's Industrial Agglomeration

With the continuous deepening of market-oriented reforms of China's socialist market economic system,the market for production factors such as capital and labor has become more active,and the cross-regional flow of factors has become more frequent.In the process of free flow of various factors across regions,due to the influence of factor remuneration,there is a clear difference between the factor aggregation and industrial aggregation status in various regions.Under the current promotion incentives for officials,local government officials are faced with competitive pressure for promotion.This will inevitably lead to fierce competition for local governments to gather industries,and taxation policies become an important policy tool.Tax competition guides the free flow of factors.The government 's choice of different taxation objects has different impacts on the economy.The factor compensation in each region will dominate the location selection of factors and industries.The imbalance of tax rates will obviously affect the flow of capital and labor,thereby affecting regional industrial agglomeration.In the context of the current "supply-side structural reforms",taxation is an important segment of government regulation of the economy.Due to the influence of the distribution of enterprises in the region and the determination of industrial agglomeration and the actual tax rate in the region,the tax rate directly affects the local public goods supply capacity,That affects the choice of industrial location and residents' welfare.The consumer's indirect utility function that joins the government procurement behavior forces consumers to actively adjust their behavior,which will cause changes in the enterprise's production function and consumer function,becoming an important driver of industrial agglomeration,which in turn affects industrial space balance and regional coordinated development.Based on the new economic geography framework,this paper builds a tax competition decision model and analyzes the impact of regional tax competition on industrial agglomeration.The research shows that the labor factor tax rate has a positive effect on industrial agglomeration,while the capital factor tax rate has a negative effect on industrial agglomeration,and empirical tests are conducted on the theoretical results using2005-2017 Chinese provincial data.The results show that the labor factor tax rate is positively correlated with industrial agglomeration,indicating that an increase in thetax rate on labor factors in a region will increase government revenue,thereby enabling the government to improve the local public goods supply and public service level,which will benefit the local government Industry gathering in the region.That is,the increase in the effective tax rate of the labor factor will not cause a corporate coat.The capital factor tax rate is negatively related to industrial agglomeration.This shows that the bottom-up competition of capital factors among regions does have an attractive effect on industrial agglomeration.At the same time,the improvement of the regional transportation convenience factor and market openness can increase the degree of industry agglomeration,indicating that trade cost is the focus of industry location choice,which verifies that the cost of living effect and market proximity effect in new economic geography make economic activities Agglomeration appears.Also.The regression coefficient of industrial endowment is a positive indication that good industrial endowment also creates a good development environment for industrial agglomeration.The effective tax rate structure determines the direction of factor flow and affects industrial agglomeration.Tax policy supply should focus on structural adjustment and emphasize the internal optimization of the tax system,which is of great significance for promoting the relative fairness of the factor tax burden in various regions for regional coordinated development.The policy implications of this article are: In the context of local governments competing for industry aggregation,the central government should supervise and coordinate local governments 'tax competition and reduce the disorderly competition that may exist between local governments.Can not passively participate in the tax competition between regions,should effectively avoid the "competition" form of tax rate competition,taking into account the tax balance of labor factors and capital factors...