Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China

Export tax rebate (ETR) and inwards foreign direct investment (IFDI) are important driving forces for the steady development of China’s export-oriented economy. Based on data from 2004 to 2019, this study puts forward relevant assumptions on constructing a model for empirically analyzing the impact...

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Main Authors: Bingqiang Li, Xi Li, Jinzhi Li, Hongchun Lin, Baojuan Rui
Format: Article
Language:English
Published: SAGE Publishing 2023-12-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440231218577
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author Bingqiang Li
Xi Li
Jinzhi Li
Hongchun Lin
Baojuan Rui
author_facet Bingqiang Li
Xi Li
Jinzhi Li
Hongchun Lin
Baojuan Rui
author_sort Bingqiang Li
collection DOAJ
description Export tax rebate (ETR) and inwards foreign direct investment (IFDI) are important driving forces for the steady development of China’s export-oriented economy. Based on data from 2004 to 2019, this study puts forward relevant assumptions on constructing a model for empirically analyzing the impact of the ETR on China’s IFDI from the perspective of the national and the sub-national. The result demonstrates that there exists a complementary relationship between the ETR and IFDI; the weak lag effect of ETR on IFDI in the eastern, middle, and western regions of China; an explicit impact on the performance in the western region, which lags behind only one period; and no significant lag effect of ETR on IFDI in developed, moderately developed, and underdeveloped regions. On the basis of this evaluation, the conclusion could be achieved that that ETR has a significant effect on IFDI, though there may be differences in the direction and value of the impact. The highlight of this research is to detect the impact of ETR on IFDI by taking China as a case, and achieved that there exist sub-national differences, including the geographical and development-level differences.
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spelling doaj.art-63af897a61164b2dbe6d170f5c3335802023-12-23T16:06:18ZengSAGE PublishingSAGE Open2158-24402023-12-011310.1177/21582440231218577Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in ChinaBingqiang Li0Xi Li1Jinzhi Li2Hongchun Lin3Baojuan Rui4Jiangxi Science & Technology Normal University, Nanchang, ChinaJiangxi Science & Technology Normal University, Nanchang, ChinaJiangxi Science & Technology Normal University, Nanchang, ChinaJiangxi Science & Technology Normal University, Nanchang, ChinaZhejiang Technical Institute of Economics, Hangzhou, ChinaExport tax rebate (ETR) and inwards foreign direct investment (IFDI) are important driving forces for the steady development of China’s export-oriented economy. Based on data from 2004 to 2019, this study puts forward relevant assumptions on constructing a model for empirically analyzing the impact of the ETR on China’s IFDI from the perspective of the national and the sub-national. The result demonstrates that there exists a complementary relationship between the ETR and IFDI; the weak lag effect of ETR on IFDI in the eastern, middle, and western regions of China; an explicit impact on the performance in the western region, which lags behind only one period; and no significant lag effect of ETR on IFDI in developed, moderately developed, and underdeveloped regions. On the basis of this evaluation, the conclusion could be achieved that that ETR has a significant effect on IFDI, though there may be differences in the direction and value of the impact. The highlight of this research is to detect the impact of ETR on IFDI by taking China as a case, and achieved that there exist sub-national differences, including the geographical and development-level differences.https://doi.org/10.1177/21582440231218577
spellingShingle Bingqiang Li
Xi Li
Jinzhi Li
Hongchun Lin
Baojuan Rui
Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
SAGE Open
title Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
title_full Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
title_fullStr Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
title_full_unstemmed Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
title_short Empirical Analysis of Export Tax Rebate on Inwards Foreign Direct Investment in China
title_sort empirical analysis of export tax rebate on inwards foreign direct investment in china
url https://doi.org/10.1177/21582440231218577
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