Trading market access for technology? Tax incentives, foreign direct investment and productivity spillovers in China

被引:15
|
作者
Deng, Ziliang [1 ]
Falvey, Rod [2 ]
Blake, Adam [3 ]
机构
[1] Renmin Univ China, Sch Business, Beijing 100872, Peoples R China
[2] Bond Univ, Sch Business, Southport, Qld 4229, Australia
[3] Bournemouth Univ, Sch Tourism, Poole BH12 5BB, Dorset, England
关键词
Tax incentives; Foreign direct investment (FDI); Productivity spillovers; Computable general equilibrium (CGE) modeling; FDI; LINKAGES; FIRMS;
D O I
10.1016/j.jpolmod.2012.01.003
中图分类号
F [经济];
学科分类号
02 ;
摘要
Tax incentives have been adopted worldwide to attract foreign direct investment (FDI) and its superior technology. However whether tax incentives can promote FDI productivity spillovers remains unknown. We develop a static computable general equilibrium (CGE) model of China to explore it. The results suggest that abolishing differential tax system leads to weaker FDI spillovers in the short term. Nonetheless, the reform lifts up the productivity entry threshold for foreign firms, and the surviving domestic firms become more productive and thus more capable of absorbing productivity spillover. (c) 2012 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
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收藏
页码:675 / 690
页数:16
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