Export to elude Fan, Haichao; Liu, Yu; Qiu, Larry D. ...
Journal of international economics,
November 2020, 2020-11-00, 20201101, Letnik:
127
Journal Article
Recenzirano
How does domestic value-added tax (VAT) reform affect firms' export? We address this question via a model in which firms choose their sales for the domestic and foreign markets optimally. The model ...predicts that strengthening domestic tax enforcement has a negative effect on domestic sales but a positive effect on exports when firms face a convex production cost function. We test the model predictions using detailed firm- and product-level data from Chinese industrial surveys and customs records. Our empirical analyses rely on China's Golden Tax Project, which is an information technology introduced in 2001–2002 that dramatically reduces the cost of VAT enforcement. We find that, after the adoption of the technology by the government, firms located far from local tax offices face a larger increase in their effective VAT rates than those located nearby (the enforcement effect), and the former increase their export more than the latter (the elusion effect). We also find that the elusion effect is stronger for firms subject to higher export rebates or more severe financial constraints.
This study investigates firm-level environmental responses to China's export value-added tax (VAT) rebate reduction policy launched in 2007 that aims to reduce exports in high-polluted and ...high-energy-consumption sectors. First, we combine firm-level export information from the Customs dataset and the list of policy-targeted products to identify firms affected by export VAT rebate reduction policy. Then, we employ a difference-in-differences strategy to examine changes in the affected and unaffected firms' sulfur dioxide and chemical oxygen demand emissions before and after policy implementation. Empirical analysis reveals that the export rebate reduction policy increases firms' pollution emission intensities and decreases their total outputs, leading to a negative but less significant effect on total pollution emissions. Tests to explore the mechanism reveal that firms' financial constraints become tighter if affected by the export VAT rebate reduction, as evidenced by reduced revenues, profits, and total factor productivity. This further translates into lowered purchases of environment-friendly technologies and a worse capacity to adopt clean production practices, which accounts for increased pollutant emission intensities following the export VAT rebate reduction policy.
•This study examine the impact of export VAT rebate reduction policy on firms' pollutant emission outcomes.•The results suggest that firms affected by the policy increase their pollutant emission intensities.•Policy-induced financial constraint is the main channel for baseline findings.•Affected firms would reduce their investment in environment-protection equipment, and increase their energy/resource use per output.•Firms located in financially developed regions are less affected by the policy.
This paper investigates the impact of the abolition of the agricultural taxes in 2005 across China on county governments' incentives for tax enforcement. I show that the revenue loss of county ...governments was largely offset by tougher tax enforcement. The incentive for VAT enforcement can be weakened, however, if the county: (1) receives a lower share of total VAT revenues; (2) has a broader VAT tax base; or, (3) has more abundant sources of revenue from land sales. These findings suggest that incentives of local governments can be vital to tax enforcement and to the tax capacity of a country.
•Incentives of local governments are vital to enforcement of tax law and the tax capacity of a country.•I use a natural experiment in China to investigate county governments' incentives for tax enforcement.•I find revenue loss of county governments was largely and quickly offset by tougher tax enforcement.•The effective VAT rates increased without changes in statutory rates nor changes in the reported tax base.•The incentive for VAT enforcement can be affected by VAT sharing ratio and capacity of revenue mobilization.
A destination-based VAT system without a complete export tax rebate is detrimental to a country's exports, while an increase in the VAT rebate rate helps reduce the negative effects. In this paper, ...we study the role of VAT rebates in affecting Chinese exports using firm-level panel data for 2000–2006. To address potential endogeneity, we rely on a quasi-natural policy experiment in 2004, when the fiscal conditions of local governments became important in determining the actual VAT rebate rates for exports. The empirical findings demonstrate significant and large effects of VAT rebates on export volume. On average, for each percentage point increase in the VAT rebate rate, the amount of exports increased by 13%, which translates into an additional $4.70 of exports for each $1 of export tax rebates paid.
•Theory suggests value-added tax with incomplete export rebate act as export tax.•We study the impact of VAT rebates on Chinese exports using firm-level panel data.•We find robust evidence that VAT rebates increased Chinese firm's exports.•Each additional $1 spent on VAT rebates increased Chinese exports by $4.7.
Our study shows that China's export value‐added tax (VAT) rebate system is a major industrial policy that affects its exports. We use export data at the HS6 product level for a panel of 329 Chinese ...cities over the 2003–2012 period to assess how changes in the export VAT tax have affected China's export performance. We consider different trade margins in terms of volumes, prices, and the number of countries served. To counter endogeneity, we exploit variations in the expected impact of the export VAT rebates by trade regime, which come from an eligibility rule disqualifying certain export flows from the rebates. Our results suggest that a 1 percent decline in the export VAT tax leads to a 7.2 percent relative increase in eligible export values at the city level. This effect is due to an adjustment of quantities and the number of foreign markets served while the average unit values of exports remain unchanged.
Structural tax reduction represents a crucial measure supporting the advancement of real enterprises, with discernible policy spill-over effects on corporate asset allocation. This paper empirically ...examines the impact of tax reduction on the financialization of real enterprises, utilizing data from Chinese listed companies spanning the years 2009 to 2016 and anchored in the policy shock induced by the “VAT Reform”. The findings suggest that the tax reduction effect resulting from the “VAT Reform” significantly suppresses the financialization of real enterprises, with this policy effect gradually diminishing from the third year onward. Further heterogeneity analysis reveals that tax reduction exerts a more pronounced impact in curbing the intensity of corporate financialization, particularly in private enterprises and companies facing higher financial constraints. Subdividing the term structure of financial assets indicates a significant reduction in the allocation of long-term financial assets for both state-owned and private enterprises. Remarkably, state-owned enterprises show no significant change in the allocation of short-term financial assets, while private enterprises witness a substantial increase in short-term financial asset allocation. Further tests validate the conclusion that increased investment in operating assets by enterprises supports the established impact. The research enriches the literature on corporate financialization, offering a novel evaluative perspective for assessing the effects of the “VAT Reform” policy.
•This study investigates the VAT Reform on real enterprises in view of financialization•We utilizes the distinctive policy context of China’s tax system reform.•The VAT Reform can effectively reduce level of financialization in real enterprises•The spillover effects of tax policy reform at the enterprise level is evident.
This paper estimates the impact of a pilot policy reform in China that replaced the business tax (BT) with a value-added tax (VAT) for the service sectors on the total factor productivity (TFP) of ...manufacturing firms. Employing a difference-in-differences (DD) estimation approach, our results show that through forward and backward linkages (FLs and BLs, respectively) along the value chain, this pilot program has a positive effect on manufacturing firms’ TFP. A 1% increase in FLs (BLs) leads to an approximately 7% (16%) increase in firm productivity. This effect is larger for non-state-owned enterprises and labor-intensive firms than for other firms. Manufacturing firms with high intensities of exporting activities are affected only through BLs. Further exploration shows that this increase in productivity is realized mainly through increased specialization of firms. Our findings imply that simplification and unification of the tax system across sectors can help boost firm productivity.
•Impact of China’s VAT pilot program on manufacturing firms’ TFP levels.•We use a DD approach to address endogeneity.•VAT positively affects manufacturing firms through FLs and BLs.•This effect is larger for non-state-owned enterprises and labor-intensive firms.•The increase in TFP is realized through increased firm specialization.
Purpose
The dimensional accuracy of three‐dimensional (3D) printed anatomical models is essential to correctly understand spatial relationships and enable safe presurgical planning. Most recent ...accuracy studies focused on 3D printing of a single pathology for surgical planning. This study evaluated the accuracy of medical models across multiple pathologies, using desktop inverted vat photopolymerization (VP) to 3D print anatomic models using both rigid and elastic materials.
Methods
In the primary study, we 3D printed seven models (six anatomic models and one reference cube) with volumes ranging from ~2 to ~209 cc. The anatomic models spanned multiple pathologies (neurological, cardiovascular, abdominal, musculoskeletal). Two solid measurement landing blocks were strategically created around the pathology to allow high‐resolution measurement using a digital micrometer and/or caliper. The physical measurements were compared to the designed dimensions, and further analysis was conducted regarding the observed patterns in accuracy. All of the models were printed in three resins: Elastic, Clear, and Grey Pro in the primary experiments. A full factorial block experimental design was employed and a total of 42 models were 3D printed in 21 print runs. In the secondary study, we 3D printed two of the anatomic models in triplicates selected from the previous six to evaluate the effect of 0.1 mm vs 0.05 mm layer height on the accuracy.
Results
In the primary experiment, all dimensional errors were less than 1 mm. The average dimensional error across the 42 models was 0.238 ± 0.219 mm and the relative error was 1.10 ± 1.13%. Results from the secondary experiments were similar with an average dimensional error of 0.252 ± 0.213 mm and relative error of 1.52% ± 1.28% across 18 models. There was a statistically significant difference in the relative errors between the Elastic resin and Clear resin groups. We explained this difference by evaluating inverted VP 3D printing peel forces. There was a significant difference between the Solid and Hollow group of models. There was a significant difference between measurement landing blocks oriented Horizontally and Vertically. In the secondary experiments, there was no difference in accuracy between the 0.10 and 0.05 mm layer heights.
Conclusions
The maximum measured error was less than 1 mm across all models, and the mean error was less than 0.26mm. Therefore, inverted VP 3D printing technology is suitable for medical 3D printing if 1 mm is considered the cutoff for clinical use cases. The 0.1 mm layer height is suitable for 3D printing accurate anatomical models for presurgical planning in a majority of cases. Elastic models, models oriented horizontally, and models that are hollow tend to have relatively higher deviation as seen from experimental results and mathematical model predictions. While clinically insignificant using a 1 mm cutoff, further research is needed to better understand the complex physical interactions in VP 3D printing which influence model accuracy.
Financial constraint is a significant obstacle for firm growth, especially in developing countries where credit is scarce. This paper explores the role of tax policy in relaxing firms' financial ...constraints by exploiting China's value-added tax (VAT) reform that was initiated in 2004 and completed in 2009. We use a quasi-experimental method and Annual Survey of Industrial Firms (ASIF) data from 2000 to 2009 to estimate the VAT reform's policy effects on financial constraints. We show that the VAT reform significantly improves firms' external financing capacity by decreasing borrowing costs and promoting commercial credit. The findings are robust to alternative specifications but show heterogeneity across ownerships, firm sizes, regions, and between export and non-export firms. Our analysis suggests tax deduction is useful to relax firms' financial constraints.
•We explore the causality between tax deduction and financial constraints in the context of a large developing country.•We consider both formal and informal external financial constraints.•We use quasi-experiment method by exploiting the variations of China's VAT reform.•We provide rich robustness checks and heterogeneity analysis.
Synthetic Difference-in-Differences Arkhangelsky, Dmitry; Athey, Susan; Hirshberg, David A. ...
The American economic review,
12/2021, Letnik:
111, Številka:
12
Journal Article
Recenzirano
Odprti dostop
We present a new estimator for causal effects with panel data that builds on insights behind the widely used difference-in-differences and synthetic control methods. Relative to these methods we ...find, both theoretically and empirically, that this “synthetic difference-in-differences” estimator has desirable robustness properties, and that it performs well in settings where the conventional estimators are commonly used in practice. We study the asymptotic behavior of the estimator when the systematic part of the outcome model includes latent unit factors interacted with latent time factors, and we present conditions for consistency and asymptotic normality.
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