A New Perspective on Regional Tax Burden Differences in China

Wei XI, Jun XU

Journal of Systems Science and Information ›› 2016, Vol. 4 ›› Issue (5) : 391-407.

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Journal of Systems Science and Information ›› 2016, Vol. 4 ›› Issue (5) : 391-407. DOI: 10.21078/JSSI-2016-391-17
Article

A New Perspective on Regional Tax Burden Differences in China

  • Wei XI1, Jun XU2
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Abstract

Regional tax burden difference is related to regional sustainable development and social interests balance. Based on the calculation of the tax burden of 31 provinces and cities in 1995-2013, this paper puts forward that the over-statement of GDP is an important reason that causes the deviation of tax share and economic share. By using spatial econometric method, the results show that the economy as a whole is overvalued; investment in fixed assets, the proportion of secondary industry and state-owned economy have positive effects on regional GDP overestimated; per capita income and R&D have significantly negative effects on regional tax growth. Besides, the regional tax burden has spatial autocorrelation characteristic. This paper explains the abnormal difference of regional tax burden from a new perspective.

Key words

tax burden / regional differences / GDP over-statement / spatial econometrics

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Wei XI, Jun XU. A New Perspective on Regional Tax Burden Differences in China. Journal of Systems Science and Information, 2016, 4(5): 391-407 https://doi.org/10.21078/JSSI-2016-391-17

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Funding

Supported by "the Fundamental Research Funds for the Central Universities (SKZZY2013004, SKZZX2013011)", and "the National Social Science Fund Project (12CYJ004, 14BTJ015)"

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