Research On The Influence Of Export Refund Policy Adjustment To The FDI In China

Export refund has been adopted by more and more countries as a foreign trade policy,because it can avoid double taxes and other countries don’t oppose it. As is from2005,our national export refund policies have been constantly adjusted, for the purpose ofoptimizing product mix and promoting industry upgrading. Our country restricts theexport of high-energy, large polluting and resources products by reducing or cancelingexport refund rates, and encourages the export of high tech, high value added products byincreasing export refund rates. Now our country is facing the increase of RMBappreciation, international trade conflicts and trade surplus, then export refund policiescan properly remit these problems. As a macro-control mean, export refund policy isbecoming significantly in our national economic development.Since reformation and opening, FDI in our country is increasing and is first amongthe developing countries since1993. Now our country is at the stage of economicrestructuring, should actively using foreign capital to promote our general proficiencyand strengthen our national competitive force. As a macro-control mean, export refundpolicy must affect many aspects of our economy, especially in the export increasing. Theexport sales ratio of the wholly foreign-owned enterprises in our country is more than50percent of our national export sales. As our export developing rapidly and FDI increasinglargely, researching the influences of export refund adjustment to FDI is important.This issue applied EVIEWS3.1and time series data to do the ADF Test,Cointegration Test and Granger Causality Test. Then did regression analysis. The resultsshowed that the variables were positively correlated. Then this issue took the steelindustry as an example and proved again that export refund and FDI were positivelycorrelated. The empirical conclusions were that export refund affected the scale,construct and area distribution of FDI. Finally this issue raised policy suggestions forexport refund adjustment from the angle of FDI.