Research On Stimulation Effect Of Government Support To SMEs In Overseas Investment

Small and medium-sized enterprises (SMEs) play a critical role in China’s economy nowadays, including the creation of the GDP, supplying tax revenue as well as increasing job opportunities. A steady and fast development of the national economy is based on a nice and fast development of SMEs which is also a great strategy related to people’s livelihood and social stability. As the "Going out" strategy was put forward and listed as one of the four new strategies in "The Tenth Five Years" Plan, SMEs went out of China to implement overseas investment and faced many difficulties because of their weaknesses. According to what has been mentioned above, government support to SMEs in overseas investment is imperative.Based on the theory of small scale technology the research starts from the specific measures of the government support to SMEs in overseas investment and is not limited to a certain measure, but from the point of macro view of stimulation effects of government support to SMEs in overseas investment. This dissertation takes the history of the development of SMEs in overseas investment and the evolution of the government support in different stages as the start point, an empirical analysis between overseas investment performance and government support from2001to2010is made. Finally, recommendations and measures are concluded which will deepen the content and research methods of the government support system to SMEs and play an important part in the further development of SMEs.The dissertation first introduces the background and significance of the study, then, defines some certain concepts as well as reviews the literature on overseas investment and government support at home and abroad, research ideas, main ideas, weaknesses and innovations are introduced at last.In the second chapter, the author reviews the overall develop process of our country’s overseas investment briefly, then analyses the current characteristic of overseas investment according to detailed data. The same situation of SMEs is also introduced after that. The overseas investments of SMEs from the year2001to2010is listed, and taken as the dependent variable in the empirical analysis. Finally, the problems existing in SMEs in overseas investment are analyzed from macro and micro aspects. In the third chapter, the author expounds the necessity of government support to SMEs in overseas investment, six specific actions of the government support to SMEs in overseas investment are listed; then, advantages and disadvantages of the actions in the process of implementation are introduced, and takes them as the variables in the empirical analysis. In the empirical part, the government support is divided into quantifiable group and unquantifiable group. First, the author takes the quantifiable government support—tax and fund as the variables and SMEs overseas investments as the dependent variable to make a empirical analysis through linear regression model and draws the conclusion that the government fund and tax support to SMEs in overseas investments has positive stimulation effect. Then the author uses time trend model to make an empirical analysis on the unquantifiable support policies to draw the conclusion that the implement of the policies also has positive incentive effect on SMEs in overseas investments.In the end, according to the problems existing in SMEs in overseas investment, the result of the empirical analysis and related policies of developed countries, the author puts forward the corresponding countermeasures and suggestions on SMEs in overseas investment in the future based on perfection of the law system, finance and economic system as well as service system.