A system dynamics model of coordinated development of central and provincial economy and oil enterprises

Based on the characteristics of oil exploration and development and the inherent rule of a coordinated development of central and provincial economy and oil enterprises in oil producing provinces, this paper addresses the principal questions that determine the coordinated development of the central economy, provincial economy and oil enterprises, and establishes a dynamic model for the above three variables. The research takes Shaanxi Province as an example and makes analogue simulation of the situations from 2006 to 2020. The results indicate that China's provincial governments need to share more tax income, reform some taxes on oil enterprises, and China's oil industry needs to be open to both provincial state-owned enterprise and private enterprise. Meanwhile, this research also provides policy proposals for the coordinated development of central and provincial economy and oil enterprises regarding taxation and sustainable development in China's market-oriented economy.