|
on China |
| By: | Julien Gourdon (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Laura Hering (Erasmus University Rotterdam - Department of Regional, Port and Transport Economics); Stéphanie Monjon (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Sandra Poncet (FERDI - Fondation pour les Études et Recherches sur le Développement International - Fondation pour les Études et Recherches sur le Développement International) |
| Abstract: | Compared to most countries, China’s value-added tax (VAT) system is not neutral and makes it less advantageous to export a product than to sell it domestically, as exporters may not receive a complete refund on the domestic VAT they have paid on their inputs. However, the large and frequent changes to the VAT refunds which are offered to exporters have been led China to be accused of providing its firms with an unfair advantage in global trade. We use city-specific export-quantity data at the HS6-productlevel over the 2003-12 period to assess how changes in these VAT rebates have affected Chinese export performance. Our identification strategy relies on triple difference estimates that exploit an eligibility rule which disqualifies processing trade with supplied materials from these rebates. We find that changes in VAT rebates have significant export repercussions: eligible export quantity for a given city-HS6 pair rises by 6.5% following a one percentage-point increase in the VAT rebate. This magnitude yields abetter understanding of the strong resistance of Chinese exports during the global recession, in which export rebates increased substantially. |
| Keywords: | export tax,China,export performance,VAT System |
| Date: | 2017–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01496741&r=cna |
| By: | Julien Gourdon (CEPII - Centre d'études prospectives et d'informations internationales - CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Stéphanie Monjon (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Sandra Poncet (CEPII - Centre d'études prospectives et d'informations internationales - CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique) |
| Abstract: | This work investigates the motivations behind the Chinese fiscal policy on exports. It relies on very detailed product level (HS 6 digit) data over the period 2002-12 covering both export tax and export VAT rebate. It aims to uncover the respective importance of the various policy motivations and how they evolved over time. Our empirical analysis relates the tax rates to proxies of official objectives pursued by the Chinese public authorities such as those related to the promotion of technology or protection of the environment but also other unstated motives pertaining to subsidization of downstream sectors and terms of trade. Our results suggest that the Chinese fiscal policy targeting exports followsa variety of objectives whose relative importance changed over the period 2002-2012. |
| Keywords: | industrial policy,export tax,Trade policy,VAT system,China |
| Date: | 2017–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01496419&r=cna |
| By: | Kaiji Chen; Jue Ren; Tao Zha |
| Abstract: | We estimate the quantity-based monetary policy system in China. We argue that China's rising shadow banking was inextricably linked to banks' balance-sheet risk and hampered the effectiveness of monetary policy on the banking system during the 2009-2015 period of monetary policy contractions. By constructing two micro datasets at the individual bank level, we substantiate this argument with three empirical findings: (1) in response to monetary policy tightening, nonstate banks actively engaged in intermediating shadow banking products; (2) these banks, in sharp contrast to state banks, brought shadow banking products onto the balance sheet via risky investments; (3) bank loans and risky investment assets in the banking system respond in opposite directions to monetary policy tightening, which makes monetary policy less effective. We build a theoretical framework to derive the above testable hypotheses and explore implications of the interaction between monetary and regulatory policies. |
| JEL: | E02 E5 G11 G12 G28 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23377&r=cna |