China's Export Tax Rebate Study

As an export promotion mechanism, export refund institution is put in practice by many countries and regions. It also is allowed by World Trade Organization to promote its members exportation. China established export refund institution formally in 1985, and then the institution has been adjusted for many times. The export refund institution has had great influence on export and economic growth of China, especially after South-east Asia financial crisis. However, there are many problems such as "cheating at export refund" existing in the present system of export refund, and many disputes in theory. So the reform of present export refund mechanism becomes a focus of attention in recent years.From the viewpoint of economics, the target of every economic policy is to promote economic efficiency and increase welfare. This paper focuses on the economic efficiency of the export refund institution and analyzes the institution in both normative and positive way, and then guides the direction of reform of the institution in the view of the maximum of national welfare.The implement of export refund is in favor of global resource allocation, but it has uncertain effect on the economic efficiency and welfare of the implementary country. Export refund has different performance in different industries, so the best way to implement the export refund is to constitute different refund policies in different industries according to their economic efficiency. But in fact, there are many difficulties in the constitution and implement of incomplete refund policy, so complete refund policy should be the right direction of the reform of the export refund institution.