An Empirical Study About the Impact of Tax on Foreign Direct Investment Inflow to Guangdong Province

Abstract

The aim of this paper is to examine the relationship between tax and foreign direct investment in Guangdong Province basing on econometric model. The results indicate that tax is not the main factor in statistics and less important than good infrastructure and open market. In the long run, the results also imply that the current new tax policies won’t affect negatively foreign direct investment inflow to Guangdong in the future. On the above analysis, some policy implications are presented.