The Empirical Analysis Of Economic Effects Of China's Export Tax Rebate Policy

Export rebate system, which provides a more competitive price of exported goods,is often chosen by the tax department of a country to allow the drawback of indirect tax.China's export rebate system, which was formally established in 1985 and adjustedmany times afterwards, has had great influence in China's export and domesticmacroscopic policy.Using the data of the exchange rate, export quantum, trade balance between 1985and 2002, this paper analyzes the economic effects of export, national income, financialincome and expenditure under an econometric model. By discussing the policy meaningof this positivistic analysis, this paper concludes that export rebate policy has a positiveeffect on the development of China's export and national economy. With much moreintense competition in world trade and narrower policy space after the entrance of WTO,export rebate system, which is one of the few adjustment mechanisms accord withinternational rules, should be paid more attention to as an important tax lever.