| Macro tax burden has always been a focal point of concern for all sectors of Chinese society.With the implementation of a series of tax reduction policies,there have been some new changes in the level of macro tax burden in China,which has affected the total factor productivity level to a certain extent.This paper analyzes the impact of macro tax burden on China’s provincial total factor productivity from the perspective of macro tax burden acting on regional total factor productivity.First,the mechanism of macro tax burden acting on total factor productivity at provincial level in China is clarified from a theoretical perspective.Second,the current status of China’s tax burden level is analyzed,and a nonradial SBM-DEA model combined with the Malmquist index is used to measure the total factor productivity index and its decomposition term for China’s provincial administrative regions.Again,the overall impact and specific impact mechanisms of macro tax burden on total factor productivity are empirically examined using panel data of 30 provincial administrative regions in China over the period 2001-2019 as the observed sample.Lastly,the nonlinear threshold characteristics of the macro tax burden acting on provincial total factor productivity are further explored by introducing a threshold nonlinear effect model.Through the above theoretical analysis and empirical tests,the following conclusions are drawn: First,from the perspective of tax burden level,the overall tax burden level in China shows a development trend of rising and then falling.In addition,there is a general upward evolution of provincial total factor productivity and significant regional differences,with total factor productivity levels in the eastern regions outperforming those in the central and western regions.Secondly,the decline in macro tax burden has a positive incentive effect on provincial total factor productivity,mainly in that the decline in tax burden promotes technical progress and technical efficiency,thus contributing to the increase of total factor productivity.At the same time,there is heterogeneity in the impact of macro tax burden on total factor productivity.At the regional level,the decrease in tax burden clearly benefits the total factor productivity in the eastern and central regions,while the effect on the western region is not significant.At the level of high and low total factor productivity,the decrease in tax burden significantly contributes to the growth of total factor productivity in high productivity areas compared to low productivity areas.In terms of mechanism,labor force employment and human capital structure are the two channels through which macro tax burden affect total factor productivity,the decrease of tax burden promotes an increase in labor force employment while optimizing the human capital structure,thus contributing to total factor productivity.Third,there is a threshold effect on the impact of macro tax burden on total factor productivity.When the level of tax burden is used as the threshold variable,the boosting effect of a declining tax burden on total factor productivity is significantly weaker after crossing the threshold,and when the level of scientific and technological innovation is used as the threshold variable,the boosting effect of a declining tax burden on total factor productivity is similarly weaker after crossing the threshold.Based on the results of theoretical research and empirical analysis,we propose policy recommendations to help improve the total factor productivity of each region in China through the implementation of tax reduction measures.First,optimize and improve tax and fee reduction policies to promote total factor productivity.Secondly,according to the economic development of each region,adopt differentiated tax and fee reduction policies according to local conditions.Third,in the process of implementing tax and fee reduction policies,governments at all levels also need to focus on the differences between labor force employment and human capital structures in different regions.Fourth,we should scientifically grasp and comprehensively assess the non-linear threshold impact of macro tax burden on total factor productivity,and timely adjust and improve the existing tax and fee reduction policies. |
