Analyses of Path Dependence of Taxation Reform

Abstrcat Based on the Path Dependence Theory in the new institutional economics, this paper analyses the difference in the tracks of taxation reform from the aspects of institutional environment and arrangement. It interprets the significant impact and mechanism of path dependence on taxation reform: differences in institutional arrangement overlapping on different institutional environment leads to different tracks of taxation reform, either to a virtuous cycle or to an inefficient lock, as the case may be.