The Impact of the Tax Administration Cooperation Mechanism of"The Belt and Road"on China's OFDI
Promoting high-level outward foreign direct investment(OFDI)is an key issue for high-level opening-up,and improving the international tax and business environment is an important ap-proach to promote both the quantity and quality of OFDI.Based on the data from 2015-2021 the Belt and Road partner countries(regions),this paper uses the difference-in-difference method to ex-plore whether the Belt and Road Tax Administration Cooperation Mechanism can improve the tax business environment and promote China's outward foreign direct investment.The results show that the Belt and Road Tax Administration Cooperation Mechanism has effectively promoted China's outward foreign direct investment in the member countries(regions)of the Cooperation Mecha-nism,and a series of robustness test results support this conclusion.The analysis of the mechanism shows that tax convenience,tax collection and management efficiency,tax cost and business envi-ronment are important influencing mechanisms.The results of the heterogeneity test show that the cooperation mechanism especially increases China's OFDI flows to countries(regions)with poor in-itial tax facilitation,low initial OFDI,and close geographical distance.Therefore,based on the Belt and Road Initiative,the Chinese government should continue to promote the construction of tax col-lection and management cooperation mechanisms between China and the Belt and Road partner countries(regions),so as to create a better international tax and business environment for Chinese enterprises to"go global".
Tax Administration Cooperation MechanismOutward Foreign Direct InvestmentIn-ternational Tax Business EnvironmentThe Belt and Road
万方数据
