chapter  9
16 Pages

Swapping market access for productivity spillovers? An assessment of 2008 corporate income tax reform

China’s FDI policies China’s FDI policies are mainly stated in two types of official documents, namely the Guiding Directory on Industries Open to Foreign Direct Investment (FDI Directory) and various laws and regulations (see Table 9.1), which were originally issued at the early stages of “Reform and Opening-up” policy implementation in the late 1970s and early 1980s. Although these official documents have been amended various times in the past three decades, one of the priority targets has never been changed: that FDI policies should provide foreign firms with preferential incentives (Prasad and Rajan 2006) aimed at swapping domestic market access for advanced foreign technology and productivity (Long 2005).