Research On The Impact Of Tax Burden Level On Foreign Direct Investment

Since the last century,with the development of science,technology and economic globalization,the demand for foreign investment is increasing,and the total amount of international investment is growing.According to data released by the government,China 's total foreign direct investment funds from 1993 to 2013 ranked first in developing countries for 21 consecutive years.In some years,total foreign direct investment inflows exceeded that of the United States.However,since 2017,due to the impact of the US subprime mortgage crisis,global economic growth has slow down,the global foreign direct investment has experienced negative growth.Thus,countries have adopted a series of measures to attract foreign investment,the most important of which is to reduce the tax burden on foreign investment.This article first analyzes the impact of tax rate on the business environment,then analyzes the relationship between the tax rate of foreign-invested enterprises and the amount of foreign investment directly used.Third,it analyzes the regionality differences of foreign investment in China,discuss the impact of tax competition in different regions on foreign investment,and further verify through empirical analysis,finally put forward many suggestions based on the empirical results.The study shows that the tax rate is negatively related to the amount of foreign investment,but the tax rate do not have a significant influence on the entire business environment,especially compared to the factors of economic development level or infrastructure construction of a country or a region.Thus,if China wants to increase the attractiveness of foreign investment,it should take comprehensive measures to improve the comprehensive income of enterprises,to ensure high-quality foreign investment inflows,and to promote economic development.