Open Access Journal Article

Tax effect of digital economy development in China: The policy effect and transmission mechanism

by Jun Mao a ,  Jianmin Liu b,c,*  and  Zhiyuan Liu d
a
School of Mathematics and Statistics, Hainan Normal University, Haikou, China
b
School of Economy and Trade, Hunan University, Changsha, China
c
School of Economics and Management, Changsha University of Science and Technology, Changsha, China
d
Carey Business School, The Johns Hopkins University, Baltimore, USA
*
Author to whom correspondence should be addressed.
JIE  2023, 4; 1(1), 4; https://doi.org/10.58567/jie01010004
Received: 14 December 2022 / Accepted: 14 January 2023 / Published Online: 16 January 2023
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Abstract

The development of digital economy is becoming an important path to promote the kinetic energy of China's tax revenue development. Based on the panel data from 2011 to 2018, this paper uses Gini coefficient to analyze the regional differences of China's digital economy, and uses fixed effect model, spatial Durbin model, multi-period double difference model and other empirical methods to examine the tax effects of digital economy development. The results show that the regional disparity is the main reason for the regional disparity of digital economy development in China. The development of digital economy directly increases the tax amount of local digital industry, and at the same time it also radiates and drives the increase of local total tax revenue; The tax effect of digital economy has a negative spatial spillover, showing a "siphon effect" to neighboring areas; Mechanism analysis shows that the development of digital economy mainly promotes the increase of local tax revenue through growth effect.

Keywords: Digital economy; Tax effect; Broadband China; Economic growth;
Copyright: © 2023 by Mao, Liu and Liu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Mao, J.; Liu, J.; Liu, Z. Tax effect of digital economy development in China: The policy effect and transmission mechanism. Journal of Information Economics, 2023, 1, 4. https://doi.org/10.58567/jie01010004
AMA Style
Mao J, Liu J, Liu Z. Tax effect of digital economy development in China: The policy effect and transmission mechanism. Journal of Information Economics; 2023, 1(1):4. https://doi.org/10.58567/jie01010004
Chicago/Turabian Style
Mao, Jun; Liu, Jianmin; Liu, Zhiyuan 2023. "Tax effect of digital economy development in China: The policy effect and transmission mechanism" Journal of Information Economics 1, no.1:4. https://doi.org/10.58567/jie01010004
APA style
Mao, J., Liu, J., & Liu, Z. (2023). Tax effect of digital economy development in China: The policy effect and transmission mechanism. Journal of Information Economics, 1(1), 4. https://doi.org/10.58567/jie01010004

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