Tax Arrangement and Regional Industrial Restructuring: Evidence from Panel Data in China

Table 5

Empirical analysis of influence of tax arrangements to IDH.

Path	Variables	lidh
		Model I	Model II	Model III	Model IV	Model V	Model VI
Macrotax	lmtb^2	0.438; (6.81)	0.393; (5.76)	0.364; (6.27)	0.323; (5.30)	0.371; (4.73)	0.375; (6.33)
	lmtb	1.873; (7.22)	1.632; (6.17)	1.570; (7.12)	1.381; (5.73)	1.588; (5.28)	1.596; (7.12)
Turnover tax	lvat^2			0.013; (0.93)	0.004; (0.29)
	lvat			−0.487; (−1.35)	−0.250; (−0.64)
	lbt^2			0.012; (0.91)		0.003; (0.15)
	lbt			−0.249; (−0.70)		−0.097; (−0.21)
Income tax	lcit^2	0.013; (3.42)			0.015; (1.60)
	lcit	−0.383; (−3.61)			−0.331; (−1.43)
	liit^2		0.018; (3.39)			0.021; (1.32)
	liit		−0.432; (−3.27)			−0.470; (−1.30)
Resource tax	lrt	−0.006; (−0.31)	−0.038; (−2.41)			−0.023; (−1.15)
Property tax							0.009; (0.86)
							−0.513; (−1.57)
							0.007; (0.73)
							−0.062; (−0.21)
Control variables	ltp	0.037; (1.42)	0.028; (1.07)		0.030; (1.19)
	lcs			−0.010; (−0.23)	−0.007; (−0.16)	−0.015; (−0.32)
	lis			0.102; (1.95)	0.096; (1.85)	0.076; (1.36)
Regional differences	D	0.083; (0.98)	0.018; (0.21)	0.118; (1.78)	0.118; (1.60)	0.052; (0.59)	0.077; (1.34)
Constant	C	4.707; (6.21)	4.544; (5.49)	6.915; (5.39)	5.780; (3.81)	5.248; (3.33)	6.462; (4.87)
	Within	0.2092	0.2039	0.2232	0.2322	0.2102	0.2380
	Between	0.6092	0.6198	0.7034	0.6834	0.6504	0.7597
	Overall	0.5530	0.5608	0.6390	0.6231	0.5837	0.6910

, , and indicate statistical significance at the 1%, 5%, and 10% significance level, respectively. The -statistics are given in parenthesis, is a measure of goodness of fit in model regression, -within is the from the mean-deviated regression, and -between is the square of correlation between and , and -overall is the square of correlation between and .