Centralization of Tax System and Market Segmentation: Causal Inference Based on the NTB-LTB Merger Reform

Centralization of Tax System and Market Segmentation: Causal Inference Based on the NTB-LTB Merger Reform | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Centralization of Tax System and Market Segmentation: Causal Inference Based on the NTB-LTB Merger Reform Yang Zuo, Kenichi Kurita This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7989486/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper employs a macro- and micro-level difference-in-differences analysis from 2015 to 2022 to examine the impact of increased tax administration centralization, resulting from the merger of national tax bureau (NTB) and local tax bureau (LTB) in China, on market segmentation. The study finds that the merger reduced local government interference in tax agencies, decreased the level of tax competition and tax base erosion, and consequently lowered the degree of market segmentation. Furthermore, the impact varied based on the types of provinces and enterprises. This study provides a new perspective for understanding the influence of tax policy reform on market segmentation and offers policy recommendations for reforming the tax system. NTB-LTB Merger Reform Centralization of Tax Administration Market Segmentation Tax Competition Tax Base Erosion Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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