VAT rebates and export performance in China: Firm-level evidence

摘要: Abstract A destination-based VAT system without a complete export tax rebate is detrimental to country's exports, while an increase in the rate helps reduce negative effects. In this paper, we study role of rebates affecting Chinese exports using firm-level panel data for 2000–2006. To address potential endogeneity, rely on quasi-natural policy experiment 2004, when fiscal conditions local governments became important determining actual rates exports. The empirical findings demonstrate significant and large effects volume. On average, each percentage point rate, amount increased by 13%, which translates into additional $4.70 $1 paid.