The Impact of Inclusive Financial Tax Reduction on Entrepreneurship from the Perspective of Fiscal and Financial Coordination
Enhancing the ability of fiscal and financial coordination to serve the real economy is an important grasp for China to promote mass entrepreneurship and innovation.This paper uses county-level data in China from 2011 to 2019,and studies whether the tax reduction policy for co-ordinated inclusive financial development is helpful to regional entrepreneurship based on the val-ue-added tax exemption policy for small and micro enterprises and individual industrial and com-mercial enterprises of financial institutions implemented in 2017.It finds that by exempting finan-cial institutions from value-added tax on specific loan interest income,reducing the service cost of financial institutions to support small enterprises,and guiding the flow of loans in a targeted man-ner,it has a significant role in promoting the level of entrepreneurship.Moreover,the promotion effect of the tax reduction policy on entrepreneurship is more significant in counties with higher con-centration of financial institutions and closer to provincial capital cities,which reasonably reduces the monopoly of financing from the high concentration of financial institutions,which also shows that the implementation of tax reduction policies depends on location advantages to a certain extent.
inclusive financetax reductionfiscal and financial coordinationentrepreneurship
万方数据
维普
