Research On The Impact Of Tax Collection And Administration On Foreign Direct Investment

With the in-depth development of economic globalization,countries around the world will accelerate the introduction of foreign direct investment as an important way to participate in the international division of labor and integrate into the development process of economic globalization,and the competition for transnational capital on a global scale has intensified.The inflow of foreign direct investment has brought advanced science and technology and corporate governance experience to China,and has also created a large number of jobs,which is an important driving force for China’s economic development.Since the 90 s of last century,the Chinese government has attracted a large number of foreign direct investment with its multi-level tax reduction and reduction policy,but in the context of the post-epidemic era and the global economic slowdown,with the increase of fiscal pressure on fiscal revenue and expenditure,the country’s space for implementing tax and fee reduction policies has been further compressed.Under the framework of improving national governance capacity and governance level,the research value and importance of tax collection and management have become more and more prominent.Realizing legal,standardized and predictable tax collection and management is an inherent requirement for deepening the reform of tax "decentralization,management and service" and optimizing the tax business environment,and it is also a practical need to promote economic and social development under China’s inclusive tax reduction idea of "compulsory collection and management-tax reduction".In the context of deepening the reform of tax "decentralization,management and service" and accelerating the introduction of foreign investment,it is a topic of great research significance to explore how tax collection and management can affect the inflow of foreign direct investment.The main research contents of this paper include: firstly,the existing literature on tax collection and management and foreign direct investment is sorted out,the relevant concepts are defined,and the international production compromise theory,location selection theory,transaction cost theory and governance theory are introduced.Based on the existing literature and theoretical basis,the influence mechanism of tax collection and management on FDI inflow is analyzed from the perspectives of tax burden and business environment,and a research hypothesis is put forward.Then,the development of tax collection and management in China and the current situation of foreign direct investment are analyzed.Then,the panel data of 264 prefecture-level cities in China from 2011 to2019 was used to construct an econometric model and conduct empirical research to verify the impact of tax collection and management on foreign direct investment.It is found that in the process of enhancing tax collection and management,the effect of legal regulation and predictable tax collection and administration on the optimization of the business environment exceeds the inhibitory effect of tax burden,and the overall inflow of foreign direct investment has a significant promotion effect.In further research,this paper distinguishes the scale of different prefecture-level cities for analysis,and the results show that there is heterogeneity in the impact of tax administration on FDI in different regions.Specifically,the role of tax collection and administration in promoting the inflow of foreign direct investment is more significant in large and medium-sized cities.Finally,the paper summarizes the research results of the full text and puts forward relevant policy recommendations: correct the understanding of tax collection and management on both sides,strengthen tax collection and management,and balance the gap between cities of different sizes.The research in this paper enriches the research perspective on the influencing factors of FDI and the economic effects of tax collection and administration,helps to more correctly understand the relationship between tax collection and management and FDI inflow,and helps to further deepen the reform of tax "decentralization,management and service" to promote the construction of business environment and better serve the inflow of FDI.