Tax Revenue Capacity, GDP, Stochastic Frontier Analysis, Panel Data
Taxation is an important source of regional revenue growth and economic operation quality improvement, and taxation and economic and social development are interacting and influencing each other. In the process of regional economic growth, the only way to maintain the balance of tax policies in various fields and adjust the regional tax system is to continuously increase the economic growth rate, so as to achieve a balanced growth of tax revenue and regional economy. Therefore, this paper will focus on the coordinated development management of tax revenue and economic growth in China. Based on the economic and tax data of 31 Chinese provinces and cities in the past 10 years from 2009 to 2018, we construct a stochastic frontier surface model to conduct a stochastic frontier analysis on the mutual influence relationship between tax revenue and GDP, and we find that GDP has a positive pulling effect on the tax revenue capacity of 31 Chinese provinces and cities. Economic growth will promote the increase of tax revenue, and the increase of tax revenue will also drive economic growth. Based on the results of the analysis, suggestions were made to improve the economic development of remote areas and to increase inter-regional cooperation between provinces and cities.