On the Local Tax Growth After the Tax Sharing Reform in China

This paper conducts an empirical study on the growth of local tax effort as well as its influencing factors after the tax sharing reform based on the provincial data.The results indicate that:(1) China's local tax realizes its rapid growth with large fluctuation after the tax sharing reform;(2) The tertiary industry,secondary industry and export are the top three factors that contribute to the rapid growth of local tax;(3) There is no crowding out effect from non-tax financial revenue on local tax in local tax system.