Foreign Direct Investment Dynamic Relationship With China's Tax Revenue

Three decades of reform and opening up, China's economic growth and foreign direct investment have made remarkable achievements, China has become the largest country in developing countries that use foreign direct investment for 15 years. In China foreign direct investment has played a very important role in comprehensively improving the level of economic development, upgrading its industries, introducing advanced production technology.On the basis of existing research, by reasonable assumptions, Thesis build the short term and the long term cobweb model of foreign direct investment (FDI) and the tax revenue under an open economy Condition,but also build the equilibrium model of foreign direct investment (FDI) growth rate and tax revenue growth,in order to make a deep analysis on the dynamic relationship between foreign direct investment (FDI) and tax revenue.It more fully demonstrated the economics mechanism on the dynamic relationship between foreign direct investment (FDI) and tax revenue.On the basis of the analysis of economic mechanism above, through appling quantitative analysis methods, in the perspective of empirical to research the questions which has been raised. By constructing the VAR model to make a full analysis of the dynamic relationship that foreign direct investment (FDI),the tax revenue,RMB exchange rate and other measurable impact factors of foreign direct investment (FDI) which may exist.By building panel Data model to analyze the different economic regions of foreign direct investment (FDI) and the tax revenue the dynamic relationship which may exist, to provide the basis for further analysis of differentiation of foreign direct investment (FDI) that may exist different economic regions.By nonlinear dynamic system model to make the ordinary differential equation model to estimate the reasonable value Range or value of the optimal degree of flexibility of China's foreign direct investment (FDI) growth rate and tax revenue growth rate in short-term and long-term. Finally, to give the corresponding suggestion to the issues which have been found in the course of the study.