DOI: 10.5061/dryad.fj6q5747v
title: Does local government tax competition promote industrial transformation and upgrading

description: Promoting industrial transformation and upgrading is the vital and main
 driving force for realizing high-quality economic development. The paper
 related to this dataset systematically interprets the theoretical
 mechanism of local government tax competition and industrial
 transformation and upgrading from the theoretical level, based on which,
 through the fixed effect model, we test the impact of local government tax
 competition on industrial transformation and upgrading, the transmission
 mechanism, and the moderating effect played by technological innovation.
 The study finds that: (1) There exists an inverted “U-shaped” relationship
 between local government tax competition and industrial transformation and
 upgrading, which is driven by incentives and then constrained by
 competition and is tested by a series of robustness tests; (2)
 Heterogeneity analysis shows that the inverted “U-shaped” relationship
 between local government tax competition and industrial transformation and
 upgrading is more evident in cities with no economic growth targets,
 cities in the eastern region, economically developed cities, and cities
 with weak tax officials; (3) Mechanism test shows that local government
 tax competition mainly contributes to industrial transformation and
 upgrading by adjusting the tax structure, reducing the inequality of
 income distribution and strengthening the level of industrial
 agglomeration; (4) Technological innovation positively moderates the
 inverted “U-shaped” relationship between local government tax competition
 and industrial transformation and upgrading, and makes the inverted “U”
 curve steeper and the inverted “U-shaped” relationship more pronounced.
 The study helps to identify the impact of local government tax competition
 on industrial transformation and upgrading. The study helps to identify
 the specific effect of local government tax competition on industrial
 transformation and upgrading. It can provide theoretical support and
 decision-making reference for optimizing local tax policies and promoting
 high-quality economic development.
description: # Does local government tax competition promote industrial transformation
 and upgrading Dataset DOI:
 [10.5061/dryad.fj6q5747v](https://doi.org/10.5061/dryad.fj6q5747v) ##
 Description of the data and file structure This dataset comprises
 city-level panel data for empirical analysis of how local government tax
 competition influences industrial transformation and upgrading in China.
 The data span the period from 2011 to 2022, covering 270 prefecture-level
 cities. Primary data sources include the Statistical Yearbook of Chinese
 Cities, provincial statistical yearbooks, and local government work
 reports. Key variables comprise measures of local government tax
 competition and industrial transformation and upgrading, alongside a range
 of control variables such as economic development level, fiscal capacity,
  Infrastructure level, Education level, population density, and degree of
 openness to the outside world. Moderating variables include technological
 innovation. Mediating variables encompass tax structure, income
 distribution, and industrial agglomeration. ### Files and variables ####
 File: data.xlsx **Description:** This file contains all city-level panel
 data for the analysis of local government tax competition and industrial
 upgrading. ##### Variables * In the file data.xlsx, Column A: pro denotes
 the province identification code（**Column name: pro**）; Column B: id
 denotes the city identification code（**Column name: id**）; Column C: year
 denotes the study year（**Column name: year**）; Column D: Score denotes
 industrial transformation and upgrading (index, dimensionless)（**Column
 name: ITU**）; Column E: TAX denotes local government tax competition
 (index, dimensionless)（**Column name: Taxcompete**）; Column F: RGDP
 denotes economic development level (ten thousand yuan per capita)（**Column
 name: Rgdp**）; Column G: FC denotes fiscal capacity (percentage
 %)（**Column name: FC**）; Column H: Road denotes infrastructure development
 (percentage %)（**Column name: Road**）; Column I: Edu denotes educational
 attainment (percentage %)（**Column name: Edu**）; Column J: PD denotes
 population density (percentage %)（**Column name: PD**）; Column K: Open
 denotes degree of openness to the outside world (percentage %)（**Column
 name: Open**）; Column L: Inno denotes technological innovation (number of
 instances)（**Column name: Inno**）; Column M: GAP denotes income
 distribution (index, dimensionless)（**Column name: GAP**）; Column N: IA
 denotes industrial agglomeration (percentage %)（**Column name: IA**）;
 Column O: TaxS denotes tax structure (percentage %)（**Column name:
 TaxS**）; ## Code/software The data file `data.xlsx` can be viewed and
 processed using Microsoft Excel. ## Access information Other publicly
 accessible locations of the data: * This dataset is original and has not
 been published elsewhere in its current form. The data were compiled by
 the authors from the following primary sources。 Data was derived from the
 following sources: * China City Statistical Yearbook (2011-2022)
 Provincial Statistical Yearbooks (2011-2022) Local Government Work Reports