An Empirical Study on the Tax Policy to Promote the Development of Urbanization

Abstract

New urbanization is an important engine of future economic development, how to use the powerful tax policy to facilitate this process, is particularly important. Select the 1991-2013 tax income and urbanization rate in China, the empirical research on the tax policy to promote the development of urbanization. The establishment of the VAR model, through the stationary test of model variables, lag selection and construction, stationarity test, cointegration test, model test, and the establishment of VEC model, a detailed analysis of the impulse response function. The existence of long-term cointegration relationship of tax revenue and the rate of urbanization, urbanization and development of tax policy to maintain long-term internal consistency, the importance of urbanization tax policy junction has incentive theory.