Heterogeneous Effects of Individual Income Tax Reform on Enterprises’Total Factor Productivity

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 10

Year of Publication : 2021

Authors : LI Gui Ping, HE Qian

10.14445/23939125/IJEMS-V8I10P106

How to Cite?

LI Gui Ping, HE Qian, "Heterogeneous Effects of Individual Income Tax Reform on Enterprises’Total Factor Productivity," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 10, pp. 38-43, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I10P106

Abstract:

This paper studies the effect of individual income tax reform upon total factor productivity in China using the data of Shanghai and Shenzhen A-share listed companies from 2017 to 2019. The empirical results show that the reform of personal income tax promoted improvement of enterprises’ total factor productivity in manufacturing industry, information transmission, software, and information technology services industry, leasing and business services industry, real estate industry, and culture, sports, and entertainment industry; while the total factor productivity of financial enterprises is inhibiting ed by the reform of individual income tax. These conclusions evaluate the economic effect of China's individual income tax reform from the micro perspective of enterprises, enrich the literature on personal tax reform and total factor productivity, and provide theoretical reference and enlightenment for the government's optimization of the tax system.

Keywords:

Individual Tax Reform, Total Factor Productivity, Heterogeneous Effect

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