The Effect of Tax-Collection Mechanism and Management on Enterprise Technological Innovation: Evidence from China

Yuan Jiang, Jianwen Qin and Hayat Khan
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Yuan Jiang: School of Economics, Guangxi University, Nanning 530004, China
Jianwen Qin: School of Economics, Guangxi University, Nanning 530004, China
Hayat Khan: China Center for Special Economic Zone Research, Shenzhen University, Shenzhen 518000, China

Sustainability, 2022, vol. 14, issue 14, 1-20

Abstract: Tax collection and management is an important cornerstone to safeguard a country’s financial strength, and it is also a key task to realize the modernization of a country’s tax governance. This study examines the effect of tax-collection mechanism and management on technological innovation in China from 2007 to 2020. By using a fixed effect model, the findings indicate that a higher intensity of regional compulsory tax collection and management rises the level of technological innovation of enterprises. Strengthening tax collection and management is more conducive to raising the level of technological innovation of midwestern enterprises, non-high-tech enterprises and enterprises in a poor market environment. The concrete impact mechanism shows that tax collection and management improve the level of enterprises and technology innovation by using a tax credit-rating system and enhancing enterprises’ information transparency; the application of the Golden Three system has been more conducive to strengthening tax collection and management to enhance the level of enterprises’ technological innovation. The findings of this study have policy implications for China regarding rising innovation through tax collection

Keywords: tax collection and management; tax credit; intermediary effect; technological innovation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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