Study On Impact Of Expact Tax Rebat System On FDI

As an important part of tax policy, export refund rate has constantly been improved and changed from an export policy into a vital macro-policy measure since it was established 20 years ago. According to previous research, some mathematic models have proved sound explanation between export refunds and FDI, and significant relevance between them as well. Whereas, the causes of the effects has not been profoundly exploited. In this essay, a calculation method of the export refund rate is to be introduced to deduce the fact that the impacts will be imposed on the profit rate of a foreign enterprise causes by the export refund rate. Then, the impacts on the investment scale of the foreign enterprise. Empirical research will be conducted to testify this mathematic model. The level of the export refund rate, to some degree, determines the profit whose maximum is the goal of an enterprise and on which all of the strategies should be based. Sure enough, the adjustment of export refund rate influences an enterprise's final profit. On this ground, a Gambling model is to be set to analyze the effect of the adjustment of export refund rate on the strategies of FDI.