Transformations  in
Business & Economics

THE EFFECTS OF FISCAL AND TAXATION POLICIES ON THE INNOVATION EFFICIENCY OF MANUFACTURING ENTERPRISES: A COMPARATIVE STUDY FROM THE PERSPECTIVE OF ECONOMIC REGIONS
Lei Liu, Canhua Kang, Zongyi Yin, Zhenyu Liu

ABSTRACT. Fiscal and taxation policies represented by government subsidies and tax incentives have consistently been an important intervention for the government to motivating innovation. However, existing research ignores the contingency impact of regional differences on the incentive effects of fiscal and taxation policies. To explore the effects of regional differences on the relationship between fiscal and taxation policies and the efficiency of manufacturing enterprises' innovation, Using data on China's Shanghai and Shenzhen A-share manufacturing listed companies from 2008-2016, the DEA (Data Envelopment Analysis) model, and multiple regression models, the influence of fiscal and taxation policies on the innovation efficiency of manufacturing enterprises and the moderating effects of regional marketization and innovation capabilities were analysed from the perspective of economic regions. Results show that fiscal and taxation policies can improve the innovation efficiency of manufacturing enterprises. However, the effect of improving the innovation efficiency of enterprises through financial subsidy policies is more significant than that obtained through tax incentives due to the clear, explicit, and direct characteristics of the former policies. Differences exist in the effects of fiscal and taxation policies on the efficiency of enterprises' innovation in different economic regions. Compared with the western region, the eastern and central regions present stronger innovation efficiency of fiscal and taxation policies for manufacturing enterprises. The innovation efficiency of fiscal and taxation policies in manufacturing enterprises in Yangtze River Delta and Pearl River Delta regions is more significant than that in the Beijing-Tianjin-Hebei region. The degree of regional marketization and regional innovation capability exert certain moderating effects on the innovation efficiency of manufacturing enterprises, but the moderating effect weakens the efficiency loss. The conclusions provide decision-making support for the adjustment and improvement of technological innovation policies of manufacturing enterprises.

KEYWORDS:  fiscal and taxation policy, manufacturing enterprises, innovation efficiency, regional marketization, regional innovation capability.

JEL classification:  E62, H71, O31, O38.