Research On The Impact Of China's Tax Competition On Regional Technology Innovation

In a market economy,competition is ubiquitous,and local governments in China are bound to compete in taxation.Before the reform and opening up,under the economic background and political environment at that time,China mainly implemented a fiscal system of "receiving revenue and supporting expenditures",while local governments represented the central government to implement taxation in detail,and could not actively promote local Economic development,so tax competition does not exist.Since the reform and opening up,China has continued to deepen market reforms and began to implement fiscal decentralization systems in different government structures.As a result,local governments in China have relatively independent and autonomous tax collection,and they also have some discretion.It has gradually become an independent economic interest subject.In order to achieve the goal of maximizing their own interests,local governments have begun fierce competition for tax resources.Technological innovation plays an important role in the economic development of a region.In order to reduce financial pressure and improve political performance,local governments have adopted various tax incentives to compete for the tax base,thereby promoting the improvement of local technological innovation.However,the impact of tax competition on technological innovation remains to be considered.However,some scholars hold the opposite opinion,thinking that vicious tax competition has reduced the government's fiscal revenue,resulting in a reduction in the government's ability to build public services,widening regional differences,and inhibiting technological innovation.Regulating the tax competition of local governments will help to coordinate the improvement of regional technological innovation and promote balanced economic development.Therefore,this article starts from tax competition and discusses its effect on the level of regional technological innovation in China.This paper studies the impact of regional tax competition on the level of technological innovation through a combination of theoretical and empirical research methods.There are five parts in this article.The first part is the introduction,which mainly explains the research background,meaning,research methods,research content and innovations of this article.The second part is the theoretical analysis.First,it explains the concepts and classification of tax competition,and introduces tax competition.The reasons and manifestations of this are based on reference to relevant literature,and a similar method of location entropy is used to measure the degree of tax competition.The third part is the analysis of the mechanism of action.It studies the impact of regional tax competition on the level of technological innovation of enterprises,and combines the theory of spatial agglomeration effects in spatial metrology to carry out analysis.The fourth part is quantitative empirical analysis.On the basis of verifying the existence of tax competition,the panel threshold regression model is used to study the impact of tax competition on technological innovation,and the tax competition is classified as a low tax competition space and a moderate tax.The competition zone and the high tax competition zone,and analyze the different impacts of different zones on the level of technological innovation.The fifth part summarizes the conclusions of this study.As the degree of tax competition increases,the effect of tax competition on the level of technological innovation presents an inverse "V" nonlinear relationship.When the degree of tax competition is low,the investment in R&D funds has a positive effect on the improvement of technological innovation.When the degree of tax competition has further increased and entered the middle tax competition range,the promotion effect of R&D funding input on the level of technological innovation has significantly improved;but as the level of tax competition has further strengthened and reached a higher level,R&D funding input The promotion effect of intensity on the level of technological innovation has been significantly reduced,and the promotion effect of R&D expenditure on the level of technological innovation has been suppressed to a certain extent.Aiming at the prominent problems in the different impact ranges of tax competition on technological innovation levels found in the above-mentioned normative analysis and empirical analysis,this article puts forward corresponding suggestions from the perspective of local government performance management systems and transfer payment systems in accordance with China's current national conditions.