International Journal of Applied Mathematics and Machine LearningAuthor's: Yan Feng Jiang
Pages: [1] - [19]
Received Date: August 10, 2014; Revised August 18, 2014
Submitted by: Jianqiang Gao.
This paper adopts trans-log production function based on the SFA model, empirically test how the change of the proportion of the value added tax impacts on each part of China’s productivity. The results show that, in tax structure, if the proportion of the value added tax is higher, the more conducive to the improvement of production efficiency. But it is not good for the technical efficiency and scale efficiency. This means the effects of value added tax on productivity is complex in China. We suggest, in the design of the VAT system, we should pay more attention to its influence on productivity. For example, implement value added tax subsidy for technology research and development (R&D). Focus on the adjustment effect of value added tax on the specialized division of labor.
the proportion of the value added tax, production efficiency, technical efficiency, scale efficiency.
