Does local government tax competition promote industrial transformation and upgrading

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 i..., , # 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 encomp...,