Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8–10, 2023, Guangzhou, China

Research Article

An Analysis of the Influence of Bilateral Tax Treaties on China's Outward Foreign Direct Investment

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  • @INPROCEEDINGS{10.4108/eai.8-12-2023.2344691,
        author={Wen  Li},
        title={An Analysis of the Influence of Bilateral Tax Treaties on China's Outward Foreign Direct Investment},
        proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2024},
        month={4},
        keywords={bilateral tax treaties ; outward foreign direct investment ;  "going out"},
        doi={10.4108/eai.8-12-2023.2344691}
    }
    
  • Wen Li
    Year: 2024
    An Analysis of the Influence of Bilateral Tax Treaties on China's Outward Foreign Direct Investment
    MSIEID
    EAI
    DOI: 10.4108/eai.8-12-2023.2344691
Wen Li1,*
  • 1: Anhui University
*Contact email: liwen512512@foxmail.com

Abstract

In order to study the influence of bilateral tax treaties on China's foreign direct investment, this paper selects the stock data of China's direct investment in 130 countries (regions) from 2007 to 2020 as a sample for regression analysis. The results show that signing bilateral tax treaties can promote China's foreign direct investment, and the promotion effect is significantly different in countries (regions) with different levels of development and tax burden: signing bilateral tax treaties with developing countries (regions) and countries (regions) with high tax burden has a better promotion effect on foreign direct investment than developed countries (regions) and countries (regions) with low tax burden. Based on this conclusion, this paper puts forward some policy suggestions, such as expanding the scope of signing bilateral tax treaties, striving for differentiated tax preferences, adjusting the terms of bilateral tax treaties in a timely manner and strengthening the utilization of bilateral tax treaties.