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Export Liberalization and Tax Enforcement: Evidence from VAT Rates in China

2021年05月13日  点击:[]

时间:5/14 (Friday), 16:15-17:30PM

地点:Room211, Shuishang Teaching Building

主题:Export Liberalization and Tax Enforcement: Evidence from VAT Rates in China

主讲人:Xiaoping Chen, Associate Professor from Harbin Institute of Technology, Shenzhen


Value-Added Tax is implemented with a significant degree of heterogeneity across firms. Using data on Chinese firms' value-added tax (VAT) payment, we empirically investigate whether export liberalization affects the within-industry VAT rate distribution across firms. Adopting a trade policy uncertainty (TPU) shock upon China's accession to the World Trade Organization as the identification strategy, we use the difference-in-difference approach to show that export liberalization significantly decreases the within-industry VAT rate dispersion with a lower level of average VAT rate. This result remains significant through a series of robustness checks. Potential mechanisms are then discussed.


Xiaoping Chen is an associate professor from Harbin Institute of Technology, Shenzhen. He earned his Ph.D in Economics from Boston College in 2013. His research interests include international trade, Chinese economy, personnel economics. He has published peer-reviewed research papers on Journal of Development Economics, World Economy, Review of International Economics, Economics & Politics, Singapore Economic Review.


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