Research On The Impact Of Tax Structure On OFDI Of China

In the context of economic globalization,in order to better participate in international competition and cooperation,driven by the "going out" strategy,the development of China's OFDI has entered a new stage.As of 2018,the stock of China's OFDI has reached 1982.27 billion US dollars,with an average annual growth rate of 31% from 2003 to 2018,accounting for 6.4% of the global total,ranking third in the world,and the scale of OFDI has expanded significantly.In order to face the potential risks faced in the "going out" process,the government should provide guarantees for the "going out" enterprises.As an important tool for government macro-control,taxation is used by more and more countries to regulate OFDI.Many studies have shown that taxation is an important driver of OFDI,but most studies are based on analysis of tax incentives.In reality,in the context of my country adopting a compound tax system,in order to adapt to the level of economic and social development in different stages,the tax structure is constantly being adjusted,the proportion of turnover tax in the overall tax is gradually reduced,and the proportion of income tax is further increased.The structural tax reduction proposed in 2008 emphasizes the adjustment of the tax structure in accordance with the social and economic development goals,to scientifically achieve the purpose of tax reduction,and promote enterprise investment.Based on this,this article attempts to analyze the impact of the home country's tax structure on OFDI from the perspective of tax structure to gain a deeper understanding of the domestic driving force of OFDI.And the paper further examine the influence of tax structure on the regional differences development trend of OFDI through convergence analysis.This article firstly combs the relevant literature theories,and then summarizes the theoretical basis of OFDI and taxation,and analyzes the transmission mechanism of the tax structure affecting OFDI;secondly,it uses descriptive statistical methods to summarize the development status of China's OFDI and tax structure.Based on the2003-2018 national panel data,The article empirically test the impact of tax structure on OFDI from a dual perspective of tax categories and major tax types with spatial measurement methods,and discuss domestic drivers of OFDI.Moreover,based on convergence analysis,the paper further explores the influence of tax structure on the regional differences development trend of OFDI.The results of the study show that:(1)The results of the spatial effect test show that there are obvious spatial agglomeration and regional differences in our country's OFDI,and there is a significant spatial positive correlation.(2)The empirical results of the marginal impact show that there are differences in the impact of quantitative indicators of taxstructure on OFDI.Turnover taxes,other taxes,and tax structure can positively promote the development of local OFDI,while income tax has a negative impact on the development of local OFDI.In addition,income tax,other taxes and tax structure can positively promote the development of OFDI in neighboring areas,and there is no significant spillover effect of turnover tax.In the internal structure of tax categories,consumption tax has a promoting effect on local OFDI,while corporate income tax has a negative Impact,and both have a significant positive spillover effect,while VAT and personal income tax have no significant effect.Through analysis,it is believed that the main purpose of OFDI of Chinese enterprises at present is not "tax avoidance",but more to avoid the high production costs in domestic production and operation,which is mainly embodied in resource-seeking OFDI;secondly,to develop markets and avoid trade barriers,which is mainly embodied in market-seeking OFDI.(3)The results of the regional difference convergence test show that the regional differences of national,eastern,central,and western OFDI all show the "overall convergence and partial divergence" rule,and the overall gap is narrowing,and only the western region does not appear to be absolute ? convergence of space.After adding the control factors,the proportion of income tax is the main factor that can positively promote the convergence of the ? conditions in the national and regional differences of OFDI.Finally,based on the empirical conclusions,policy recommendations for promoting OFDI are put forward.