Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive

The fiscal imbalance between the central and local governments under fiscal centralization may motivate local governments to pass tax burdens on firms. The causal identification of the tax system reform and the sustainable export innovation behavior of firms are of great significance. This study use...

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Autores principales:	Chen Feng, Beibei Shi, Hong Yan, Siying Yang, Caiquan Bai
Formato:	article
Lenguaje:	EN
Publicado:	Frontiers Media S.A. 2021
Materias:	fiscal centralization sustainable export innovation behavior income tax sharing reform China firm Psychology BF1-990
Acceso en línea:	https://doaj.org/article/428d57ec200f4a4d9ae2b437294a9d96
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spelling	oai:doaj.org-article:428d57ec200f4a4d9ae2b437294a9d962021-11-04T04:56:54ZSustainable Export Innovation Behavior of Firms Under Fiscal Incentive1664-107810.3389/fpsyg.2021.769795https://doaj.org/article/428d57ec200f4a4d9ae2b437294a9d962021-11-01T00:00:00Zhttps://www.frontiersin.org/articles/10.3389/fpsyg.2021.769795/fullhttps://doaj.org/toc/1664-1078The fiscal imbalance between the central and local governments under fiscal centralization may motivate local governments to pass tax burdens on firms. The causal identification of the tax system reform and the sustainable export innovation behavior of firms are of great significance. This study uses the income tax sharing policy of China to examine the impact of fiscal centralization on the sustainable export innovation behavior of firms. We find that this tax reform has significantly inhibited the increase of the export value-added rate of firms, and has an increasing trend with the share ratio between the Central Government and the local government. Moreover, this effect mainly comes from the crowding-out effect of imported intermediate goods on domestic intermediate goods. The tests show that the above conclusions are consistent with the general logic of local governments. When they face greater downward fiscal pressure, they will further pass the tax burden on local firms and force the firms to promote their export performance to expand the tax base. This short-sighted behavior of replacing “quality improvement” with “quantity increase” is an important factor that affects the sustainable export innovation behavior of firms and the climb in the global value chain.Chen FengBeibei ShiHong YanSiying YangCaiquan BaiFrontiers Media S.A.articlefiscal centralizationsustainable export innovation behaviorincome tax sharing reformChinafirmPsychologyBF1-990ENFrontiers in Psychology, Vol 12 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	fiscal centralization sustainable export innovation behavior income tax sharing reform China firm Psychology BF1-990
spellingShingle	fiscal centralization sustainable export innovation behavior income tax sharing reform China firm Psychology BF1-990 Chen Feng Beibei Shi Hong Yan Siying Yang Caiquan Bai Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
description	The fiscal imbalance between the central and local governments under fiscal centralization may motivate local governments to pass tax burdens on firms. The causal identification of the tax system reform and the sustainable export innovation behavior of firms are of great significance. This study uses the income tax sharing policy of China to examine the impact of fiscal centralization on the sustainable export innovation behavior of firms. We find that this tax reform has significantly inhibited the increase of the export value-added rate of firms, and has an increasing trend with the share ratio between the Central Government and the local government. Moreover, this effect mainly comes from the crowding-out effect of imported intermediate goods on domestic intermediate goods. The tests show that the above conclusions are consistent with the general logic of local governments. When they face greater downward fiscal pressure, they will further pass the tax burden on local firms and force the firms to promote their export performance to expand the tax base. This short-sighted behavior of replacing “quality improvement” with “quantity increase” is an important factor that affects the sustainable export innovation behavior of firms and the climb in the global value chain.
format	article
author	Chen Feng Beibei Shi Hong Yan Siying Yang Caiquan Bai
author_facet	Chen Feng Beibei Shi Hong Yan Siying Yang Caiquan Bai
author_sort	Chen Feng
title	Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
title_short	Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
title_full	Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
title_fullStr	Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
title_full_unstemmed	Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive
title_sort	sustainable export innovation behavior of firms under fiscal incentive
publisher	Frontiers Media S.A.
publishDate	2021
url	https://doaj.org/article/428d57ec200f4a4d9ae2b437294a9d96
work_keys_str_mv	AT chenfeng sustainableexportinnovationbehavioroffirmsunderfiscalincentive AT beibeishi sustainableexportinnovationbehavioroffirmsunderfiscalincentive AT hongyan sustainableexportinnovationbehavioroffirmsunderfiscalincentive AT siyingyang sustainableexportinnovationbehavioroffirmsunderfiscalincentive AT caiquanbai sustainableexportinnovationbehavioroffirmsunderfiscalincentive
_version_	1718445204694892544

Sustainable Export Innovation Behavior of Firms Under Fiscal Incentive

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