The Impact of Industrial Agglomeration in the Digital Economy on the Race to the Bottom in Taxation
Based on theories of tax competition in the context of new economic geography,this paper uses provincial panel data of China from 2012 to 2021 to construct a dynamic spatial Durbin model and empirically study the impact of industrial agglomeration in the digital economy on the race to the bottom in local government taxation.The results show that there is significant spatial correlation and path dependence in tax competition,the spatial spillover effect of industrial agglomeration in the digital economy is significant,and the degree of tax competition in a region is affected by the level of industrial agglomeration in the digital economy in both the local and its neighboring regions.Regions with a lower level of industrial agglomeration in the digital economy exhibit the tax race to the bottom,while regions with a higher level of industrial agglomeration in the digital economy have a significant taxation effect on agglomeration rent,which helps to mitigate the situation of tax race to the bottom.In this regard,it is recommended to accelerate the development of the digital economy,further improve relevant policies and systems,promote coordinated development among regions,actively guide enterprises to carry out digital transformation,and fully leverage the inhibitory effect of industrial agglomeration in the digital economy on the race to the bottom in taxation.
race to the bottom in taxationdigital economyindustrial agglomeration
NETL
NSTL
万方数据
