Can the digitalization of tax administration promote corporate digital transformation?—— empirical evidence from China

With the development of the digital economy era, the digitalization of tax administration has become a crucial component of the new round of fiscal and taxation system reforms. This study constructs a learning game theory model to explore the impact of tax administration digitalization on firms' digital transformation behavior. Utilizing the pilot implementation of the “fully digitalized electronic invoicing” system as a quasi-natural experiment, the study applies double machine learning techniques to empirically test the theoretical model. The results demonstrate that the digitalization of tax administration significantly enhances firms' digitalization levels. Mechanism tests reveal that tax administration digitalization effectively promotes firms' digital transformation by approximately 9 percentage points through its incentive effects, efficiency gains, and cost-saving effects. Furthermore, heterogeneity is observed across firms based on their characteristics, scale, market competition intensity, and regional disparities. Finally, the study provides policy recommendations on talent development, platform optimization, and data security.

Authors

Publication Details

Journal
International Review of Economics & Finance
Published
2025-09-23
DOI
https://doi.org/10.1016/j.iref.2025.104634
Citations
2
Primary Topic
Corporate Taxation and Avoidance
Type
article
Field-Weighted Citation Impact
7.82
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Can the digitalization of tax administration promote corporate digital transformation?—— empirical evidence from China

Weiqun Xi, Ling Xing
2 citations
International Review of Economics & Finance
Corporate Taxation and Avoidance
7.82
article

Can the digitalization of tax administration promote corporate digital transformation?—— empirical evidence from China

Weiqun Xi, Ling Xing
article en
2 citations

Abstract

With the development of the digital economy era, the digitalization of tax administration has become a crucial component of the new round of fiscal and taxation system reforms. This study constructs a learning game theory model to explore the impact of tax administration digitalization on firms' digital transformation behavior. Utilizing the pilot implementation of the “fully digitalized electronic invoicing” system as a quasi-natural experiment, the study applies double machine learning techniques to empirically test the theoretical model. The results demonstrate that the digitalization of tax administration significantly enhances firms' digitalization levels. Mechanism tests reveal that tax administration digitalization effectively promotes firms' digital transformation by approximately 9 percentage points through its incentive effects, efficiency gains, and cost-saving effects. Furthermore, heterogeneity is observed across firms based on their characteristics, scale, market competition intensity, and regional disparities. Finally, the study provides policy recommendations on talent development, platform optimization, and data security.

International Review of Economics & FinanceVol. 104
Openalex Percentile: Top 3%
Corporate Taxation and Avoidance
7.82
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.