Research of taxation on function mechanism of competitiveness of industrial enterprises

A major manifestation of industrial competitiveness is the long-term capacity growth, and there are two ways to enhance the capacity of enterprises, namely, increasing input elements and improving output efficiency of production, but the shortage of economic resources makes the former one unpractical. Based on the perspective of production economics, the paper measures industrial enterprises' competitiveness from the technical efficiency and allocation efficiency. Through internalization of taxationfactor as a part of input elements, the paper analyses the impacts of taxation on technical efficiency and allocation efficiency of industrial enterprises. On the research of the above, the paper extends the impacts of taxation on other factors of enterprise competitiveness, as in the case of the per capita volume of capital, labor demand and supply, etc.