Export tax rebate and the margins of exports: product-level evidence from a quasi-natural experiment

Wonkyung Lee (), Hong Ma and Yuan Xu ()
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Wonkyung Lee: Tsinghua University
Yuan Xu: Tsinghua University

International Tax and Public Finance, 2021, vol. 28, issue 2, No 6, 386-404

Abstract: Abstract This paper examines the effect of export value-added tax (VAT) rebate policy on the margins of exports in terms of export value, quantity and price. Treating the VAT rebate adjustment implemented in July 2007 as a quasi-natural experiment, we find that a reduction in the export VAT rebate rate has significantly reduced export value and quantity with an incomplete pass-through to export price. The estimated responses to the rebate are generally higher than those to exchange rate fluctuations and comparable to those to tariff changes.

Keywords: VAT rebate; Export margins; China (search for similar items in EconPapers)
JEL-codes: F13 F14 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10797-020-09633-2

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