The Relationship Between VAT Base Expansion and Intergovernmental Fiscal Relations from the Perspective of the Dual Processes of Industrialisation and Urbanisation
Journal of Chinese Tax and Policy, Vol. 2, No. 1, pp. 11-20, February 2012.
18 Pages Posted: 3 Apr 2012 Last revised: 6 Dec 2014
Date Written: March 2, 2012
Abstract
In this paper, the relationship between VAT base-expansion and intergovernmental financial relations is discussed from the perspective of the dual processes of industrialisation and urbanisation.
First, this article theoretically analyses the VAT base-expansion and its real world implications and then evaluates the intergovernmental fiscal relationship.
Lastly, an empirical simulation of the effect of base-expansion on local fiscal revenue and expenditure in this dual process is performed. Based on this conclusions are drawn and relevant policy suggestions are put forward.
Keywords: VAT base expansion, inter-governmental financial relations
JEL Classification: H00, H2, H3, K34
Suggested Citation: Suggested Citation