Abstract Accelerating the establishment of a new development paradigm in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay, has posed new requirements for deepening the consumption tax reform. Therefore, we need to focus on accelerating the establishment of a new development paradigm, combined with the establishment of a modern fiscal and tax system and tax attributes, and make effective institutional arrangements for comprehensively promoting consumption, expanding domestic demand and then forming a strong domestic market. It is meaningful to reduce tax on consumer goods involved in upgrading consumption to meet people’s needs for a better life and to raise tax on high energy-consuming, highly polluting and unhealthy consumer goods to enhance the regulatory role of consumption tax and to promote the overall optimization and upgrading of the industrial structure. The revenue of consumption tax on key tax items (categories) should belong to the central government to facilitate the smooth flow of the economic circulation.
{"title":"Consumption Tax Reform in Accelerating the Establishment of a New Development Paradigm","authors":"Deyong Zhang","doi":"10.1515/cfer-2022-0013","DOIUrl":"https://doi.org/10.1515/cfer-2022-0013","url":null,"abstract":"Abstract Accelerating the establishment of a new development paradigm in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay, has posed new requirements for deepening the consumption tax reform. Therefore, we need to focus on accelerating the establishment of a new development paradigm, combined with the establishment of a modern fiscal and tax system and tax attributes, and make effective institutional arrangements for comprehensively promoting consumption, expanding domestic demand and then forming a strong domestic market. It is meaningful to reduce tax on consumer goods involved in upgrading consumption to meet people’s needs for a better life and to raise tax on high energy-consuming, highly polluting and unhealthy consumer goods to enhance the regulatory role of consumption tax and to promote the overall optimization and upgrading of the industrial structure. The revenue of consumption tax on key tax items (categories) should belong to the central government to facilitate the smooth flow of the economic circulation.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"117 - 128"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43099516","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Hepburn, N. Stern, Chunping Xie, Dimitri Zenghelis
Abstract China’s economy has seen rapid development ever since its reform and opening-up strategy was launched in 1978. Strong economic expansion over the past four decades has taken China from low-income to upper-middle-income status. Looking back at the transformation that China has made, however, we must recognise that the old growth story is coming to an end. The phase of development driven by investment in physical capital will be increasingly supplanted by investment in assets such as knowledge and social capital as well as investment in preservation of natural capital. Recognising the challenges that China is facing, with this paper we aim to offer an approach to growth and development that could spell out a new development strategy for the country as the 21st century progresses. China will focus on the technologies with high-quality growth prospects: modern service sectors, including health, education, transport, communications and IT, artificial intelligence, finance, logistics, sustainable urban infrastructure and new food and land-use systems. With today’s technologies, China can help the Belt and Road Initiative (BRI) countries embark on a much more sustainable, more efficient and greener form of development, avoiding historical problems of pollution and congestion, with China itself moving up the value chain at the same time.
{"title":"China’s Economic Development in the New Era: Challenges and Paths","authors":"C. Hepburn, N. Stern, Chunping Xie, Dimitri Zenghelis","doi":"10.1515/cfer-2022-0007","DOIUrl":"https://doi.org/10.1515/cfer-2022-0007","url":null,"abstract":"Abstract China’s economy has seen rapid development ever since its reform and opening-up strategy was launched in 1978. Strong economic expansion over the past four decades has taken China from low-income to upper-middle-income status. Looking back at the transformation that China has made, however, we must recognise that the old growth story is coming to an end. The phase of development driven by investment in physical capital will be increasingly supplanted by investment in assets such as knowledge and social capital as well as investment in preservation of natural capital. Recognising the challenges that China is facing, with this paper we aim to offer an approach to growth and development that could spell out a new development strategy for the country as the 21st century progresses. China will focus on the technologies with high-quality growth prospects: modern service sectors, including health, education, transport, communications and IT, artificial intelligence, finance, logistics, sustainable urban infrastructure and new food and land-use systems. With today’s technologies, China can help the Belt and Road Initiative (BRI) countries embark on a much more sustainable, more efficient and greener form of development, avoiding historical problems of pollution and congestion, with China itself moving up the value chain at the same time.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":" ","pages":"3 - 22"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47839209","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Government-led poverty alleviation faces multiple constraints and limitations fighting poverty, and it is urgent to mobilize social forces as many as possible, especially the involvement of corporate forces. To figure out whether corporate participation is effective to poverty alleviation and whether regional differences have an impact on it, this paper probes into results of corporate involvement in poverty alleviation, based on corporate social responsibility report information released by A-share listed companies in 2010–2017. The findings are as follows. (1) Companies in the western region, companies directly contacting consumers and large companies with good business performance are more willing to involve in poverty alleviation. (2) The participation of enterprises in poverty alleviation can increase the per capita income of rural residents, which is even better in underdeveloped areas. This revealed that social forces represented by companies have responded to China’s call of targeted poverty alleviation and fulfilled corporate social responsibilities, which will indeed help consolidate the achievements of poverty alleviation and lift underdeveloped areas out of poverty. From the perspective of corporate involvement in poverty alleviation, this paper extends related research on social forces and another participant in poverty alleviation, and enrich the literature on social benefits brought by companies performing social responsibilities.
{"title":"Corporate Power for Poverty Alleviation: Evidence from the Poverty Alleviation Results of Chinese Listed Companies","authors":"Liya Liu, Shupeng Zhou, Yuanchen Pang, Xuehan Guo","doi":"10.1515/cfer-2022-0009","DOIUrl":"https://doi.org/10.1515/cfer-2022-0009","url":null,"abstract":"Abstract Government-led poverty alleviation faces multiple constraints and limitations fighting poverty, and it is urgent to mobilize social forces as many as possible, especially the involvement of corporate forces. To figure out whether corporate participation is effective to poverty alleviation and whether regional differences have an impact on it, this paper probes into results of corporate involvement in poverty alleviation, based on corporate social responsibility report information released by A-share listed companies in 2010–2017. The findings are as follows. (1) Companies in the western region, companies directly contacting consumers and large companies with good business performance are more willing to involve in poverty alleviation. (2) The participation of enterprises in poverty alleviation can increase the per capita income of rural residents, which is even better in underdeveloped areas. This revealed that social forces represented by companies have responded to China’s call of targeted poverty alleviation and fulfilled corporate social responsibilities, which will indeed help consolidate the achievements of poverty alleviation and lift underdeveloped areas out of poverty. From the perspective of corporate involvement in poverty alleviation, this paper extends related research on social forces and another participant in poverty alleviation, and enrich the literature on social benefits brought by companies performing social responsibilities.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"46 - 67"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46485470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract It is of great importance to fully understand the connotation of and identify a quantitative method to measure common prosperity in China. This paper starts with a theoretical framework of fairness, efficiency, development, and shared prosperity, draws upon the proper understanding of common prosperity with Chinese characteristics, and explores a globally quantitative measurement of common prosperity, with a focus on the outcomes of national prosperity and prosperity for all. Furthermore, this paper discusses the assumptions and mathematical expressions of the quantitative function and analyzes the structural implications of indicator dimensions, functional relations, and variable standardization to ultimately provide a solid quantitative foundation for promoting common prosperity. The findings show that the quantitative measurement of common prosperity proposed in this paper performs stably in terms of weights, thresholds, and indicator settings. Based on the data of 162 economies collected between 1990 and 2020, this paper finds that China has made great progress in promoting common prosperity, which showcases the strengths of the country’s socialist system.
{"title":"Theoretical Connotation and Quantitative Measurement of Common Prosperity","authors":"Haiyuan Wan, Jiping Chen","doi":"10.1515/cfer-2022-0008","DOIUrl":"https://doi.org/10.1515/cfer-2022-0008","url":null,"abstract":"Abstract It is of great importance to fully understand the connotation of and identify a quantitative method to measure common prosperity in China. This paper starts with a theoretical framework of fairness, efficiency, development, and shared prosperity, draws upon the proper understanding of common prosperity with Chinese characteristics, and explores a globally quantitative measurement of common prosperity, with a focus on the outcomes of national prosperity and prosperity for all. Furthermore, this paper discusses the assumptions and mathematical expressions of the quantitative function and analyzes the structural implications of indicator dimensions, functional relations, and variable standardization to ultimately provide a solid quantitative foundation for promoting common prosperity. The findings show that the quantitative measurement of common prosperity proposed in this paper performs stably in terms of weights, thresholds, and indicator settings. Based on the data of 162 economies collected between 1990 and 2020, this paper finds that China has made great progress in promoting common prosperity, which showcases the strengths of the country’s socialist system.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":" ","pages":"23 - 45"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43641231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The comprehensive transportation system is the intensive development stage of the transportation industry, which has gradually become the mainstream transportation mode in the world by giving full play to the advantages of different modes of transportation, promoting the effective use of resources, saving energy and reducing environmental pollution. Since the beginning of reform and opening up, China has achieved a steady improvement in the quality of transportation and a rapid growth in quantity, and has made remarkable achievements in stimulating economic growth and improving people’s well-being. During the14th Five-Year Plan period, China’s comprehensive transportation development will continue to take into account the basic needs and diversified needs, promote the diversified and high-quality development of transportation services, gradually realize the enjoyment of people’s travels and the smooth flow of goods, and continuously meet the growing needs of the people for a better life. We must follow the general idea of “forcing market entities to take the initiative to compete, guiding the development of emerging industries, cultivating the core carrier that drives the integrated development of transportation services, improving regional transportation coordination capabilities, and comprehensively using cutting-edge technologies”, constantly innovating and making breakthroughs in infrastructure, technological innovation, institutional mechanisms, investment and financing policies, and promoting the innovative development and overall leap of China’s comprehensive transportation.
{"title":"Research on the Innovative Development of China’s Comprehensive Transportation System","authors":"Jiechang Xia, Yijun Liu, Mengyuan Peng","doi":"10.1515/cfer-2022-0011","DOIUrl":"https://doi.org/10.1515/cfer-2022-0011","url":null,"abstract":"Abstract The comprehensive transportation system is the intensive development stage of the transportation industry, which has gradually become the mainstream transportation mode in the world by giving full play to the advantages of different modes of transportation, promoting the effective use of resources, saving energy and reducing environmental pollution. Since the beginning of reform and opening up, China has achieved a steady improvement in the quality of transportation and a rapid growth in quantity, and has made remarkable achievements in stimulating economic growth and improving people’s well-being. During the14th Five-Year Plan period, China’s comprehensive transportation development will continue to take into account the basic needs and diversified needs, promote the diversified and high-quality development of transportation services, gradually realize the enjoyment of people’s travels and the smooth flow of goods, and continuously meet the growing needs of the people for a better life. We must follow the general idea of “forcing market entities to take the initiative to compete, guiding the development of emerging industries, cultivating the core carrier that drives the integrated development of transportation services, improving regional transportation coordination capabilities, and comprehensively using cutting-edge technologies”, constantly innovating and making breakthroughs in infrastructure, technological innovation, institutional mechanisms, investment and financing policies, and promoting the innovative development and overall leap of China’s comprehensive transportation.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"85 - 99"},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42806863","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Under the framework of growth accounting, this paper introduces four heterogeneity characteristics of labor, namely, educational level, age, gender and industry, constructs a cross classification matrix of employment, labor compensation and working hours, and calculates the labor input (volume) of the whole country and of 19 industries during 2000–2018. Then it decomposes the volume into quantity and quality parts to analyze the total amount of labor input and the performance of industry labor input. The results are as follows. First, during the research period, the annual growth rate of labor input was 2.5%, and 78.8% of that came from the growth of labor input quality. The growth of labor input was mainly resulted from the improvement of educational level and the optimization of industrial structure. Second, in 2018, the proportions of labor input of the primary, secondary and tertiary sectors were 13.76%, 31.06% and 55.18% respectively, and the transfer speed of labor input to the secondary and tertiary sectors was higher than that of the quantity structure; the labor input volume in the new economy and related industries in the tertiary sector has been greatly increased. Third, the index method-based labor productivity (ILP) of some producer service and consumer service industries was relatively low, and the growth of total industry output mainly attributed to the increase of labor input and the expansion of industrial scale. The improvement of labor input quality has become the key to the growth of labor input in China, and the improvement of educational level is the core power to improve the labor input quality.
{"title":"Labor Inputs and Productivity in Chinese Industries: 2000–2018","authors":"Menggen Chen, Yuanyuan Hou","doi":"10.1515/cfer-2022-0002","DOIUrl":"https://doi.org/10.1515/cfer-2022-0002","url":null,"abstract":"Abstract Under the framework of growth accounting, this paper introduces four heterogeneity characteristics of labor, namely, educational level, age, gender and industry, constructs a cross classification matrix of employment, labor compensation and working hours, and calculates the labor input (volume) of the whole country and of 19 industries during 2000–2018. Then it decomposes the volume into quantity and quality parts to analyze the total amount of labor input and the performance of industry labor input. The results are as follows. First, during the research period, the annual growth rate of labor input was 2.5%, and 78.8% of that came from the growth of labor input quality. The growth of labor input was mainly resulted from the improvement of educational level and the optimization of industrial structure. Second, in 2018, the proportions of labor input of the primary, secondary and tertiary sectors were 13.76%, 31.06% and 55.18% respectively, and the transfer speed of labor input to the secondary and tertiary sectors was higher than that of the quantity structure; the labor input volume in the new economy and related industries in the tertiary sector has been greatly increased. Third, the index method-based labor productivity (ILP) of some producer service and consumer service industries was relatively low, and the growth of total industry output mainly attributed to the increase of labor input and the expansion of industrial scale. The improvement of labor input quality has become the key to the growth of labor input in China, and the improvement of educational level is the core power to improve the labor input quality.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"24 - 47"},"PeriodicalIF":0.0,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42173755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Personal income tax is an important redistribution tool, its redistribution effect has been concerned by all walks of life. Using CHIP2018, this paper calculates and analyzes the income redistribution effect of the personal income tax reform plan in 2018, and finds that: The comprehensive taxation can raise the average tax rate, progressivity and redistribution effect of personal income tax; The rise of the standard of basic deduction, six special additional deductions, and the change of tax rate structure raise the progressiveness of personal income tax, but reduce the average tax rate and thus weaken the income redistribution effect of personal income tax; The comprehensive income tax will enhance the impact of basic deduction of expenses, six special additional deductions and the change of tax rate structure on the redistribution effect of individual income tax income; Under the joint action of the reform measures, the progressivity of individual income tax has risen as a whole, but the average tax rate of individual income tax and redistribution index have shown a sharp decline, both of which decreased by more than 50%. Using the household survey data of the year of reform, this paper comprehensively investigates the income redistribution effect of the personal income tax reform, which enriches the research on the redistribution effect of the new round of personal income tax reform.
{"title":"A Study on the Income Redistribution Effect of China’s 2018 Personal Income Tax Reform","authors":"Xuanfei Zhang, Ximing Yue","doi":"10.1515/cfer-2022-0004","DOIUrl":"https://doi.org/10.1515/cfer-2022-0004","url":null,"abstract":"Abstract Personal income tax is an important redistribution tool, its redistribution effect has been concerned by all walks of life. Using CHIP2018, this paper calculates and analyzes the income redistribution effect of the personal income tax reform plan in 2018, and finds that: The comprehensive taxation can raise the average tax rate, progressivity and redistribution effect of personal income tax; The rise of the standard of basic deduction, six special additional deductions, and the change of tax rate structure raise the progressiveness of personal income tax, but reduce the average tax rate and thus weaken the income redistribution effect of personal income tax; The comprehensive income tax will enhance the impact of basic deduction of expenses, six special additional deductions and the change of tax rate structure on the redistribution effect of individual income tax income; Under the joint action of the reform measures, the progressivity of individual income tax has risen as a whole, but the average tax rate of individual income tax and redistribution index have shown a sharp decline, both of which decreased by more than 50%. Using the household survey data of the year of reform, this paper comprehensively investigates the income redistribution effect of the personal income tax reform, which enriches the research on the redistribution effect of the new round of personal income tax reform.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"70 - 88"},"PeriodicalIF":0.0,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44384673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper aims to understand China’s uneven regional development in recent years on the basis of on political economics theories. We summarizes two theories from the political economics on uneven regional development—framework of production and framework of exchange—and unifies them by theories of labor value and capital circulation. It means to show that uneven regional development will be explained with value production, value realization and capital accumulation, and their interactions as well. This framework can not only explain regional disparities in a static sense, but also presents dynamically developments of regional disparities—first rising and then falling. Empirical research finds China’s regional disparities result mainly from the value production gap. During the period of analysis, China went through a capital accumulation biased towards less developed regions, jointly shaped by market logic and government behavior. It made the effect of reducing regional disparities stronger than the “polarization effect” around 2007, producing a narrowing of disparities across regional development.
{"title":"Value Production, Value Transfer and Accumulation: A Political Economics Analysis of Uneven Regional Development in China","authors":"Zhixuan Feng, Bangxi Li, Zhiming Long, Chen Zhang","doi":"10.1515/cfer-2022-0003","DOIUrl":"https://doi.org/10.1515/cfer-2022-0003","url":null,"abstract":"Abstract This paper aims to understand China’s uneven regional development in recent years on the basis of on political economics theories. We summarizes two theories from the political economics on uneven regional development—framework of production and framework of exchange—and unifies them by theories of labor value and capital circulation. It means to show that uneven regional development will be explained with value production, value realization and capital accumulation, and their interactions as well. This framework can not only explain regional disparities in a static sense, but also presents dynamically developments of regional disparities—first rising and then falling. Empirical research finds China’s regional disparities result mainly from the value production gap. During the period of analysis, China went through a capital accumulation biased towards less developed regions, jointly shaped by market logic and government behavior. It made the effect of reducing regional disparities stronger than the “polarization effect” around 2007, producing a narrowing of disparities across regional development.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"48 - 69"},"PeriodicalIF":0.0,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41338922","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper reviews the basic implications and policy orientation of the new development pattern and the impacts of constructing the new development pattern on the manufacturing transformation and upgrading, based on which the choice of manufacturing transformation and upgrading paths is further discussed under the new development pattern. This paper holds that the paths of manufacturing transformation and upgrading need to be adjusted and expanded under the conditions of constructing the new development pattern. The main ideas are as follows. Restructuring the manufacturing industry chain with the large domestic market as the main guide, creating the good environment conducive to independent innovation, coordinating the regional layout for the overall high-quality manufacturing development, optimizing the business environment and enhancing the vitality and driving force of the manufacturing’s development, relying on the Belt and Road Initiative (BRI) for a higher level of international circulation. The theoretical bases for adjusting and expanding the paths of manufacturing transformation and upgrading are: embracing the new requirements with domestic circulation as the mainstay, the characteristics with the mutual reinforcement of domestic and international circulations, and promoting the manufacturing’s high-quality development and the medium and high-speed growth.
{"title":"Accelerating the Construction of New Development Pattern and the Paths of Manufacturing Transformation and Upgrading","authors":"Kesha Guo, Xiao-gang Tian","doi":"10.1515/cfer-2022-0001","DOIUrl":"https://doi.org/10.1515/cfer-2022-0001","url":null,"abstract":"Abstract This paper reviews the basic implications and policy orientation of the new development pattern and the impacts of constructing the new development pattern on the manufacturing transformation and upgrading, based on which the choice of manufacturing transformation and upgrading paths is further discussed under the new development pattern. This paper holds that the paths of manufacturing transformation and upgrading need to be adjusted and expanded under the conditions of constructing the new development pattern. The main ideas are as follows. Restructuring the manufacturing industry chain with the large domestic market as the main guide, creating the good environment conducive to independent innovation, coordinating the regional layout for the overall high-quality manufacturing development, optimizing the business environment and enhancing the vitality and driving force of the manufacturing’s development, relying on the Belt and Road Initiative (BRI) for a higher level of international circulation. The theoretical bases for adjusting and expanding the paths of manufacturing transformation and upgrading are: embracing the new requirements with domestic circulation as the mainstay, the characteristics with the mutual reinforcement of domestic and international circulations, and promoting the manufacturing’s high-quality development and the medium and high-speed growth.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"3 - 23"},"PeriodicalIF":0.0,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43646334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract By constructing a multi-sector DSGE model embedded with tax wedge, housing mortgage financing constraints and bank supervision constraints, this paper investigates the long-term impact of two types of real estate tax policies on economic growth and financial stability, which are the unified tax base assessment ratio and differential tax base assessment ratio for two major housing owners (household and enterprises). It also compares and analyzes the short-term impact of the above two types of real estate tax reform schemes on economic fluctuations and financial risks under the background of potential financial risks facing China’s economy. The results show that: in the long run, the real estate tax will help economic growth, boost household consumption, and effectively suppress the excessive increase in household leverage and asset bubble risk through the “suppression effect” of housing prices and the “redistribution effect” on housing. In the short run, the real estate tax will not intensify the impact of systemic financial risks, so it will not have an adverse impact on the maintenance of financial stability. Different real estate tax policies have different impact on economic growth and financial stability. Compared with the real estate tax with unified tax base assessment ratio, the real estate tax with differential tax base assessment ratio is better for the coordinated development of financial activities and the real economy in the long term and play a stronger role in economic growth, which contributes to the unity of “stable growth”, “risk prevention” and “reform”.
{"title":"Real Estate Tax Reform, Economic Growth and Financial Stability","authors":"Chuang Zhou, Min Pan","doi":"10.1515/cfer-2022-0005","DOIUrl":"https://doi.org/10.1515/cfer-2022-0005","url":null,"abstract":"Abstract By constructing a multi-sector DSGE model embedded with tax wedge, housing mortgage financing constraints and bank supervision constraints, this paper investigates the long-term impact of two types of real estate tax policies on economic growth and financial stability, which are the unified tax base assessment ratio and differential tax base assessment ratio for two major housing owners (household and enterprises). It also compares and analyzes the short-term impact of the above two types of real estate tax reform schemes on economic fluctuations and financial risks under the background of potential financial risks facing China’s economy. The results show that: in the long run, the real estate tax will help economic growth, boost household consumption, and effectively suppress the excessive increase in household leverage and asset bubble risk through the “suppression effect” of housing prices and the “redistribution effect” on housing. In the short run, the real estate tax will not intensify the impact of systemic financial risks, so it will not have an adverse impact on the maintenance of financial stability. Different real estate tax policies have different impact on economic growth and financial stability. Compared with the real estate tax with unified tax base assessment ratio, the real estate tax with differential tax base assessment ratio is better for the coordinated development of financial activities and the real economy in the long term and play a stronger role in economic growth, which contributes to the unity of “stable growth”, “risk prevention” and “reform”.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"89 - 112"},"PeriodicalIF":0.0,"publicationDate":"2022-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42773838","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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