The Value-Added Tax Reform Puzzle
This explores 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, the results suggest that there was no evid...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110906095243 http://hdl.handle.net/10986/3551 |
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okr-10986-35512021-04-23T14:02:10Z The Value-Added Tax Reform Puzzle Cai, Jing Harrison, Ann ACCOUNTING ADDED TAX ADDED TAXES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ANNUAL SALES BUSINESS ECONOMICS BUSINESS INVESTMENT CAPITAL ACCUMULATION CAPITAL ASSETS CAPITAL INTENSITY CAPITAL INVESTMENT CHECKS CONSUMER SPENDING CONSUMERS CORPORATE BEHAVIOR CORPORATE TAXES CREDIBILITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVIDEND DIVIDEND TAX DIVIDEND TAXES DOUBLE TAXATION DUMMY VARIABLE EQUIPMENT EXPENDITURE EXPORT SHARE EXPORTS FINANCIAL CRISIS FISCAL POLICY FIXED ASSET FIXED ASSETS FIXED INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN SHARE FOREIGN SHARES FUTURE RESEARCH GDP INCOME INCOME TAXES INSTRUMENT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTMENT BEHAVIOR LIQUID ASSETS MANUFACTURING INDUSTRIES MARKET ENVIRONMENT NEW PRODUCTS OUTPUT PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC FINANCE PURCHASE PRICE SALES TAX SMALL BUSINESS STATE ENTERPRISE STATE OWNED ENTERPRISES TAX BASE TAX BASES TAX CHANGES TAX DEDUCTION TAX DEDUCTIONS TAX EXEMPTION TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX POLICY TAX RATE TAX RATES TAX REDUCTION TAX REFORM TAX REFORMS TAX REFUNDS TAX REVENUE TAX SYSTEM TAXATION TOTAL FACTOR PRODUCTIVITY USE TAX VALUE ADDED VALUE ADDED TAX VALUE OF OUTPUT WAGES This explores 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, the 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 percent. The 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. 2012-03-19T18:04:29Z 2012-03-19T18:04:29Z 2011-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110906095243 http://hdl.handle.net/10986/3551 English Policy Research working paper ; no. WPS 5788 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific East Asia Asia China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADDED TAX ADDED TAXES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ANNUAL SALES BUSINESS ECONOMICS BUSINESS INVESTMENT CAPITAL ACCUMULATION CAPITAL ASSETS CAPITAL INTENSITY CAPITAL INVESTMENT CHECKS CONSUMER SPENDING CONSUMERS CORPORATE BEHAVIOR CORPORATE TAXES CREDIBILITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVIDEND DIVIDEND TAX DIVIDEND TAXES DOUBLE TAXATION DUMMY VARIABLE EQUIPMENT EXPENDITURE EXPORT SHARE EXPORTS FINANCIAL CRISIS FISCAL POLICY FIXED ASSET FIXED ASSETS FIXED INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN SHARE FOREIGN SHARES FUTURE RESEARCH GDP INCOME INCOME TAXES INSTRUMENT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTMENT BEHAVIOR LIQUID ASSETS MANUFACTURING INDUSTRIES MARKET ENVIRONMENT NEW PRODUCTS OUTPUT PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC FINANCE PURCHASE PRICE SALES TAX SMALL BUSINESS STATE ENTERPRISE STATE OWNED ENTERPRISES TAX BASE TAX BASES TAX CHANGES TAX DEDUCTION TAX DEDUCTIONS TAX EXEMPTION TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX POLICY TAX RATE TAX RATES TAX REDUCTION TAX REFORM TAX REFORMS TAX REFUNDS TAX REVENUE TAX SYSTEM TAXATION TOTAL FACTOR PRODUCTIVITY USE TAX VALUE ADDED VALUE ADDED TAX VALUE OF OUTPUT WAGES |
| spellingShingle |
ACCOUNTING ADDED TAX ADDED TAXES ADVERSE EFFECTS AFFILIATED ORGANIZATIONS ANNUAL SALES BUSINESS ECONOMICS BUSINESS INVESTMENT CAPITAL ACCUMULATION CAPITAL ASSETS CAPITAL INTENSITY CAPITAL INVESTMENT CHECKS CONSUMER SPENDING CONSUMERS CORPORATE BEHAVIOR CORPORATE TAXES CREDIBILITY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVIDEND DIVIDEND TAX DIVIDEND TAXES DOUBLE TAXATION DUMMY VARIABLE EQUIPMENT EXPENDITURE EXPORT SHARE EXPORTS FINANCIAL CRISIS FISCAL POLICY FIXED ASSET FIXED ASSETS FIXED INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN SHARE FOREIGN SHARES FUTURE RESEARCH GDP INCOME INCOME TAXES INSTRUMENT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTMENT BEHAVIOR LIQUID ASSETS MANUFACTURING INDUSTRIES MARKET ENVIRONMENT NEW PRODUCTS OUTPUT PRODUCTIVE ASSETS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC FINANCE PURCHASE PRICE SALES TAX SMALL BUSINESS STATE ENTERPRISE STATE OWNED ENTERPRISES TAX BASE TAX BASES TAX CHANGES TAX DEDUCTION TAX DEDUCTIONS TAX EXEMPTION TAX INCENTIVES TAX PAYMENTS TAX POLICIES TAX POLICY TAX RATE TAX RATES TAX REDUCTION TAX REFORM TAX REFORMS TAX REFUNDS TAX REVENUE TAX SYSTEM TAXATION TOTAL FACTOR PRODUCTIVITY USE TAX VALUE ADDED VALUE ADDED TAX VALUE OF OUTPUT WAGES Cai, Jing Harrison, Ann The Value-Added Tax Reform Puzzle |
| geographic_facet |
East Asia and Pacific East Asia and Pacific East Asia Asia China |
| relation |
Policy Research working paper ; no. WPS 5788 |
| description |
This explores 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, the
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 percent.
The 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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cai, Jing Harrison, Ann |
| author_facet |
Cai, Jing Harrison, Ann |
| author_sort |
Cai, Jing |
| title |
The Value-Added Tax Reform Puzzle |
| title_short |
The Value-Added Tax Reform Puzzle |
| title_full |
The Value-Added Tax Reform Puzzle |
| title_fullStr |
The Value-Added Tax Reform Puzzle |
| title_full_unstemmed |
The Value-Added Tax Reform Puzzle |
| title_sort |
value-added tax reform puzzle |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110906095243 http://hdl.handle.net/10986/3551 |
| _version_ |
1764387187643645952 |