YANG Zhenbing, ZHANG Cheng：Have the Policy of Income Taxes Merger Promoted the Innovation Efficiency of Foreign-funded Enterprises?——Evidence from Chinese Manufacturing Industry

Abstract：The implementation of the Policy of Income Taxes Merger in 2008 ends dual taxation system, and guarantees the fairness of tax regulations.But the influence of the change of R&D investment on innovation activity in enterprises is another important part in this change of tax regulation and the effect should get specific study and evaluation.Based on the theory framework of directed technological progress, this paper constructs the model of income taxes merger and innovation efficiency of foreign-funded enterprises, then discusses the effect of income taxes merger on innovation efficiency of foreign-funded enterprises by difference in difference method.After testing the stability of the analysis result in a variety of methods, we find that, from 2005 to 2012, the overall innovation efficiency of foreign-funded enterprises of Chinese manufacturing industry showed a rising trend, and as a result of the implementation of the policy of income taxes merger, innovation efficiency's growth rate of foreign enterprises speeded up since 2008.The marginal effect's delay of the policy is rare.The greater the domestic enterprises' share in the same industry is, more obvious the innovation efficiency of foreign enterprises caused by income taxes merger is.The policy of income taxes merger not only helps to domestic enterprises learn more advanced technology and enhance the competitiveness, but also helps to enhance the innovation impetus of foreign-funded enterprises.

Key words： The Policy of Income Taxes Merger    Innovation Efficiency    Stochastic Frontier Analysis    Difference in Difference    Foreign-funded Enterprises

source:Finance & Trade Economics ,No.9,2015