Optimal policy for attracting FDI: Investment cost subsidy versus tax rate reduction☆
Optimal policy for attracting FDI: Investment cost subsidy versus tax rate reduction☆
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DOI：
10.1016/j.iref.2017.10.018
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发表时间：
2018
影响因子：
4.5
通讯作者：
Yuan Tian
中科院分区：
文献类型：
--
作者：
Yuan Tian
本文对东道国政府吸引外商直接投资的两种政策（投资成本补贴和税率降低）进行了考察和比较。考虑到企业在两种政策之间的FDI选择值不相关，政府在补贴的直接和一定的一次性成本与未来随机流动的税率降低之间进行了权衡。我们证明了吸引FDI的最优政策取决于增长率和利润的波动性以及贴现率。这三个参数都有一个临界水平。当增长率和利润的波动性较高（或较低），贴现率较低（或较高）时，减税（或投资成本补贴）是可取的。这些结果与实证研究结果一致，即政府更倾向于对高风险、高回报的企业采取减税措施。
This paper examines and compares two policies (investment cost subsidy and tax rate reduction) for the host government to attract FDI. Taking into consideration the firm's indifferent FDI option value between the two policies, the government trades off the immediate and certain lump-sum cost of the subsidy against the future random flow of tax rate reduction. We demonstrate that the optimal policy for attracting FDI depends on the growth rate and the volatility of the profit as well as the discount rate. There exists a critical level in each of the three parameters. The tax rate reduction (or investment cost subsidy) is preferable when the growth rate and the volatility of the profit is higher (or lower), and when the discount rate is lower (or higher). These results are consistent with the empirical findings, which found that governments are more likely to adopt tax rate reduction for firms with high risk and high return.