Resource tax wedge,Technological Progress and economic growth

Hao Chunhong; Liu Xiangjie; Han Rongze

Abstract：To achieve the goal of high-quality economic development,how to avoid the cost of resource depletion caused by economic growth in the context of technological progress is an important issue worthy of attention.This article aims to reveal the endogenous impact of tax wedges and technological progress on economic growth,and expands the endogenous growth theory with resource tax wedges and technological progress as production factors.Integrating the resource tax wedge and technological progress into the production function,based on the Barro endogenous economic growth model,a four sector endogenous economic growth model is constructed,including the technology research and development department,resource extraction department,manufacturing department,and government department.The theoretical deduction of the impact relationship between the resource tax wedge,technological progress,and economic growth is presented.At the same time,empirical verification was conducted using provincial panel data from China from 2006 to 2021.Research has found that:① resource tax wedges have a restraining effect on economic growth,and resource taxes levied on resource extraction sectors will be attributed to the manufacturing sector.② The relationship between technological progress and economic growth presents a U-shaped trend.In the initial stage of technological progress,technological progress has a restraining effect on economic growth,and when the level of technology reaches a certain level,it will significantly promote economic growth.③Technological progress will reduce the inhibitory effect of resource tax wedges on economic growth.This article expands on the endogenous growth theory of resource tax wedge and the impact of technological progress on economic growth,providing theoretical support for tax reform and the derivation of technological progress.