The Impact Of Tax Competition And Fiscal Subsidies On The Flow Of Scientific And Technological Talents In The Guangdong-Hong Kong-Macao Greater Bay Are

The strategy of revitalizing China through human resource development,accelerating the creation of a highland of scientific and technological innovation talent in the Guangdong-Hong Kong-Macao Greater Bay Area,and fostering economic and social development with high-quality talent support can all be effectively implemented to advance the causes of "one country,two systems" and promote the coordinated growth of the Greater Bay Area.The high-quality development of talents is nevertheless constrained by the variations in the tax structure,economies,cultures,and business environments between Guangdong,Hong Kong,and Macao.In addition,nine cities in the Pearl River Delta,as well as Hong Kong and Macao,have implemented talent introduction policies,and local government competition has steadily changed to one centered on "competition for talents." The primary starting point for implementing the modernisation of the national governance system and governance capabilities is the fiscal and taxation policy.It should fully acknowledge the crucial part played by the government in correcting market flaws and encouraging the effective use of resources and the free flow of talent.The current body of research focuses on three main areas: the effects of talent introduction policies on innovation or economic development,the effects of tax competition on the flow of innovation factors,and the various fiscal revenue and expenditure strategies from the perspective of local government competition.The effect of tax competition and financial subsidies on the flow of scientific and technological talent is not explicitly examined.As a result,this paper examines whether different tax competition strategy interaction modes in various taxes in the Greater Bay Area’s neighboring areas from the perspective of the flow of scientific and technological talents.It also discusses the impact of local government talent introduction financial subsidies on the flow of scientific and technological talents affected by tax competition,which is useful to break the talent flow bottleneck in the area.In the first place,this paper explains the theoretical underpinnings for the government’s ability to direct the flow of talents through fiscal and taxation policies:due to the disparity in the level of public services in the Greater Bay Area,it is inevitable to result in the phenomenon of "voting with their feet" for scientific and technological talents,and the flow of talents,personnel training,and talent market all have significant externalities that require support from fiscal and taxation policies.Second,this study measures the flow of scientific and technological talent and tax competition in each city of the Greater Bay Area from 2009 to 2020.It then examines the effects of tax competition and financial subsidies on the flow of scientific and technological talent in the Greater Bay Area using the spatial Dubin model and the ordinary panel model.The empirical findings indicate that:(1)There is a tendency toward coordinated scientific and technical talent development in different regions of the Greater Bay Area;(2)There are complementary tax policies among cities in the Greater Bay Area;(3)Overall tax competition,corporate income tax competition,and personal income tax competition have a negative impact on the flow of local science and technology talents,but property tax can promote the flow of science and technology innovation talents;and(4)Under the regulation of talent subsidies,tax competition can promote the flow of scientific and technological talents,but its effect is weaker than the single use of financial subsidies.To avoid ruthless competition and homogeneous development,cities in the Bay Area should create a multi-divisional labor structure based on comparative advantage and industrial division of labor.In order to standardize tax competition,we should set up a regional tax sharing management mechanism as soon as possible,lessen the disparity in the burden of personal income tax between the three locations,enhance the preferential tax policies for individual scientific and technological accomplishments,encourage businesses to develop talent through preferential tax policies for enterprise income tax,and enhance the property tax system.In order to maximize the talent introduction policy,it is important to develop the market-oriented talent introduction policy,establish a talent assessment system,and build a pipeline of both domestic and foreign talent.