Export Market Diversification and Firm Productivity: Evidence from a Large Developing Country
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 82, S. 28-47
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In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 82, S. 28-47
In: World Development, Band 82
SSRN
Working paper
In: The Canadian journal of economics: the journal of the Canadian Economics Association = Revue canadienne d'économique, Band 54, Heft 4, S. 1562-1608
ISSN: 1540-5982
AbstractThe export tax rebate policy is one of the most frequently used policy instruments by Chinese policy‐makers. This paper provides a vital analysis of its allocation effects. We use customs transactions, tax administration and firm‐level data to measure the effect of variation in export tax rebates, taking advantage of the large policy change in 2004. A difference‐in‐difference approach allows us to compare the production and pricing decisions of eligible versus non‐eligible firms and the distributional implications. We tie these distributional results to a structural model akin to Hsieh and Klenow (2009) where incomplete tax rebates act as a tax on revenue of export sales. A reduction in tax rebates shifts production away from rebate‐eligible firms and decreases allocative efficiency. Our takeaway is that by adjusting its value‐added tax policy as a part of broader policy objectives, China introduces an allocative efficiency dimension that must be taken into consideration.
In: China & World Economy, Band 28, Heft 5, S. 1-25
SSRN
In: Globalization and Monetary Policy Institute Working Paper No. 302
SSRN
Working paper
In: China economic review, Band 86, S. 102189
ISSN: 1043-951X