Study on the Relationship between Tax Structure and R&D Investment in China

DOI

10.2991/lemcs-14.2014.225How to use a DOI?

Keywords

R&D investment; Tax reform in China; Multivariate vector auto regression (MVAR); Impulse responses; Tax reform

Abstract

By the analysis of the MVAR model for the taxes impacting on R&D investment, this paper mainly analyses the influence of China's tax system and tax structure on R&D investment the main conclusions of the empirical studies are: (1) the R&D input is positively correlated to value added tax, consumption tax and personal income tax, but the positive correlation to business tax is not significant; the R&D input is negatively correlated to corporate income tax and tariff; The impulse responses show the value added tax, consumption tax have a long term continuous positive effect on R&D input. (2) There exists impulses from the other taxes for the taxes studied, the impulse between value added tax and consumption tax is gradually increasing, business tax and personal income tax have a long-term continuous positive effect on each other. Finally this paper discusses the reform path for the taxes according to the empirical results.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yanfeng Jiang
PY  - 2014/05
DA  - 2014/05
TI  - Study on the Relationship between Tax Structure and R&D Investment in China
BT  - Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science
PB  - Atlantis Press
SP  - 1002
EP  - 1006
SN  - 1951-6851
UR  - https://doi.org/10.2991/lemcs-14.2014.225
DO  - 10.2991/lemcs-14.2014.225
ID  - Jiang2014/05
ER  -