Measures And Fiscal Policy Research For Yunnan’s Going Out Strategy

China’s economic development has made remarkable achievements since its reform and opening up. In2010, China witnessed a GDP of more than40trillion RMB Yuan, replacing Japan as the second largest economy in the world. China’s success in economy is attributed to its long term adherence to the reform and opening up as its state policy.With the growing economic strength of China, the foreign investment has become more and more important in economic activities. The Party’s16th National Congress clearly pointed out the strategy of going out and bringing in, which changed China’s foreign investment utilization from the traditional single flow to the two way flows of going out and bringing in. As one large province of China, Yunnan Province is encouraged by the strategy of going out. Many local enterprises with competitive strength are going abroad to invest directly in various ways to pursue further development. In2010, the growth of the actual investment overseas of Yunnan Province was higher than the national average growth, which made Yunnan Province ranked the10th nationwide, and the largest in investment amount among the western provinces. Large-scale overseas investment has made tremendous impact on the economic development of Yunnan, the significance of which not only contributes to pursuing raw materials, expanding international markets and accessing to technology and management experience for the enterprises, but also benefits in accelerating Yunnan’s industries’ upgrade and optimization, and promoting the local economy development in a healthy way. In2009, under the Central Government’s decision to build Yunnan as China’s important gateway open to the southwest, it was more necessary and important to implement the going out strategy which would shed vital influence on the economic and social development of Yunnan Province.At present, there is no doubt that it is of great importance for Yunnan province to implement the going out strategy and build itself as the gateway. Yunnan has also made gratifying achievements in overseas investment. Due to the limitations of the economic and social development, the overseas investment of Yunnan was stunted by governmental policy and enterprise’preparation, especially in terms of the scale of capital, technology, external communication skills, and understanding of the investment environment, all of which cannot compete with the developed areas in China, and obstruct government and enterprises’ progress of going out and the building of gateway. Therefore, the opening up has urged the local governments to take more responsibilities including enhancing its public services in terms of research and planning of overseas investment, foreign affairs coordination, policy stimulus, human resources and building of information platform, etc. so as to better organize, support and assist enterprises going abroad. Fiscal policies are one of the important measures for government and enterprises’"going out". It can be said that applicable, reasonable and complete fiscal and taxation policies affect the enterprises’enthusiasm, persistence and possibility of enterprises’going out and will shed great significance on Yunnan’simplementation of "going out" strategy and building itself as the gateway.Two clues of theory and practice constitute the basic framework of the dissertation, discussing theoretical and practical issues including direct overseas investment, competitive advantages of enterprises, government function and its possible risks related to Yunnan’s going out strategy. The paper aims at bringing in theoretical gist and experience for the development of Yunnan’s going out and building itself as the gateway, and analyzing and summarizing its advantages and disadvantages, and finding suitable fiscal and taxation policies for its strategy implementation and progress of building itself as the gateway. The dissertation is divided into six chapters, including:Chapter1:Introduction.Background and significance of the research, ideas, perspectives, methods, frameworks, and the study on the content, government function, possible risks, and direct overseas investment of going out as a development strategy, offering theoretical basis for Yunnan’s going out strategy.Chapter2:Theoretical study on "going out" as a development strategy.The chapter consists of two parts. Part one is the comprehensive review of the basic theories on development economics, regional economics, competitive advantage, and public finance relating going out as a development strategy.Chapter3:Theoretical study on Yunnan’s going out strategy.Firstly, from the dimensions of offsetting the resource disadvantage, upgrading and adjusting industrial structure, strengthening international economic cooperation, participating in AFTA development to explore the motivation of Yunnan’s implementation of going out strategy and analyze its practical meanings in economy, politics, society and culture. Secondly, elaboration on the advantages and disadvantages of Yunnan’s implementation of going out strategy, from geographical location, culture, natural resources, infrastructure, and policy environment, to the economic backwardness, weak industry foundation, lack of technological innovation, and enterprise competition fatigue.Chapter4:Early exploration of Yunnan’s going out strategy serves as an empirical study of status of Yunnan’s going out development strategy. By observing the statistics of the volume and structure of foreign trade and foreign investment, and suverying on the status of the enterprises’going out strategy, The study analyzies the existing problems and their root causes based on summarizing the strategetic development implementation and its effetiveness of its policy incentives.Chapter5:Practices of going out as a development strategy in home and abroad.Part one:practices and experience of going out as a development strategy from foreign countries (developed and developing countries). Part two:domestic practices and experience. Learnt practical experience from home and abroad for the implementation of Yunnan’s going out strategy.Chapter6:Measures and fiscal policy research on promoting Yunnan’s going out strategy.Firstly, development strategy in terms of development for the going out of products (industrial products, agricultural products, cultural products, and human resource products, etc.), investment, enterprises (large and medium-sized enterprises, small and medium-sized enterprises), and technology. Secondly, fiscal and taxation policies for implementation of going out strategy, including product, investment, enterprise and technology.