Host Country Tax Business Environment And China's OFDI

In recent years,with the continuous deepening of the construction of the “Belt and Road”,the role of tax cooperation in regional economic trade has become increasingly prominent.As one of the key factors affecting the location choice of OFDI,the "tax business environment" has attracted widespread attention of the international community from all walks of life.However,the tax system of the countries along the belt and road is different.There are also great differences in the level of Tax Legalization and the ability of tax collection and management.Chinese enterprises face the characteristics of variability and complexity when they carry out investment activities in the countries along the “Belt and Road”.In view of this,this paper selects the panel data of 46 countries along the “Belt and Road” in 2005-2017 to find out the impact of the host country's taxation business environment on China's OFDI under the “Belt and Road” initiative.First of all,from the six dimensions of total tax burden,tax system rationality,tax collection and management efficiency,tax legalization level,tax system stability,tax integrity,we build a tax business environment evaluation system along the " Belt and Road " country.Then,through the entropy method,the six dimensions of the evaluation indicators are combined into the tax business environment index,and the taxation business environment of the countries and regions along the “Belt and Road” is systematically analyzed from the intercontinental level and the national level.Finally,based on the spatial weight matrix of geographical proximity,geographical distance and economic distance,we use SAR,SEM and SAC models to empirically analyze the impact of China's OFDI spatial correlation and the tax business environment on China's OFDI.(1)The overall tax business environment of European countries is obviously better than that of Asian countries,and that of Central and Southern Europe is generally better,while that of Central Asia,West Asia and Eastern Europe needs to be improved urgently.(2)There is a significant positive spatial correlation between China's OFDI in the countries along the “Belt and Road”.(4)The factors such as the host country's tax business environment,market size,total labor force and natural resources endowment have significant positive effects on China's OFDI,while the host country's technological development level and economic growth rate have no significant impact on China's OFDI.