The impact of fiscal revenue on local government competition
Chaoye Ruan
Anhui University of Finance and Economics
lizhu Li
Anhui University of Finance and Economics
Xuemei Zhu
Anhui University of Finance and Economics
DOI: https://doi.org/10.59429/bam.v7i2.10507
Keywords: Fiscal revenue; Government competitiveness; Regional innovation; Business environment
Abstract
Based on panel data from 286 prefecture-level cities from 2013 to 2022, this study empirically analyzes the effect of fiscal revenue on the enhancement of local government competitiveness using a two-way fixedeffects model.The findings indicate that fiscal revenue can significantly enhance government competitiveness. The mechanism analysis shows that fiscal revenue effectively boosts government competitiveness by stimulating regional innovation capabilities and optimizing the business environment.Accordingly, the study proposes two suggestions: to adopt multiple measures to increase fiscal revenue and to implement targeted policies to enhance government competitiveness, in order to promote the improvement of government competitiveness through increased fiscal revenue.
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