How does Tax Relief Policy Affect Firm TFP?Empirical Evidence from"Integration of Two Taxes"
In the context of the weakening traditional drivers of economic growth on the supply side in China,to explore if tax relief policy could provide a taxation-driving force is of practical sig-nificance.Exploiting the quasi-natural experiment of the 2008 policy of"integration of two taxes",this paper employs difference-in-difference identification strategy to explore the impact of the policy on firm total factor productivity(TFP)and firm internationalization based on the data of China A-share Listed Company.It is found that:the integration of two taxes significantly promotes the firm TFP through the channels of firm research and development innovation and resource allocation effi-ciency.Extensibility analysis indicates that the integration of two taxes significantly promotes firm export and increases the scale of firm overseas direct investment by promoting firm TFP,i.e.,promotes firm internationalization by promoting firm TFP.Based on this,this paper puts forward corresponding policy suggestions,including further optimizing and improving tax relief policy,ap-propriately reducing the industry concentration degree,effectively improving corporate governance level,and employing"internal tax and fee cuts"to cope with"external levying more exports tar-iff".
integration of two taxesfirm TFPfirm internationalization
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