The value-added tax reform puzzle / Jing Cai, Ann Harrison.

Format:

Book

Author/Creator:

Cai, Jing.

Contributor:

National Bureau of Economic Research.

Harrison, Ann.

Series:

Policy research working papers.

Working paper series (National Bureau of Economic Research : Online) ; working paper no. 17532.

World Bank e-Library.

NBER working paper series ; working paper 17532

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

NBER working paper series vol. working paper 17532

Place of Publication:

Cambridge, MA : National Bureau of Economic Research, c2011.

System Details:

Mode of access: World Wide Web.

System requirements: Adobe Acrobat Reader.

data file

Summary:

"We explore the impact of a tax reform in some provinces of China which eliminated the value-added tax on some investment goods. While the goal of the experiment was to encourage upgrading of technology, our results suggest that there was no evident increase overall in fixed investment, and employment fell significantly in the treated provinces and sectors. The reform reduced the total number of employees for all types of firms. For domestic firms, it reduced employment by almost 8%. Our results are robust to a variety of approaches, and suggest that the primary impact of the policy has been to induce labor-saving growth. This experiment has since been extended to the rest of China"--National Bureau of Economic Research web site.

Notes:

Print version record

October 2011.

Includes bibliographical references.

Publisher Number:

10.1596/1813-9450-5788