Title: The Influence of Horizontal Tax Competition on Economic Development:From Inter-provincial Capital,Labor Tax and Consumption Tax Competition Perspectives
Abstract: Based on measuring the effective tax rate of capital,labor income and consumption expenditure in 31 provinces,this paper firstly examine the tax competition among provinces.Then,by constructing tax competition indicators and indicators of economic development,the paper analyzes panel data to study the influence of horizontal tax competition on economic development.The results show that there exists tax competition on inter-provincial capital tax,labor tax and consumption tax but at a low level,and the horizontal tax competition has an significant effect on regional economic growth and welfare.Specifically,capital tax competition improves the rate of economic growth,but it is not conducive to the development of social welfare,while labor tax and consumption tax competition would reduce the rate of economic growth.
Publication Year: 2015
Publication Date: 2015-01-01
Language: en
Type: article
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