Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?

Julien Gourdon, Stéphanie Monjon and Sandra Poncet ()

China Economic Review, 2016, vol. 40, issue C, 105-120

Abstract: This paper investigates the motives behind China's fiscal policy targeting exports. It relies on detailed data at the product level over the period 2002–2012. We analyze two major export fiscal instruments: export tax and export VAT rebate. Our results suggest that while pursuing many objectives simultaneously, Chinese policy used the two instruments in a complementary way with the aim of achieving their industrial policy and strategic objectives. Some are officially stated objectives such as promoting technology or environmental protection, while others do not appear in official documents, such as subsidizing downstream sectors. We also observed that China managed these instruments dynamically to address temporary shocks, for example to temper rising food price or to support strategic sectors sensitive to price competitiveness in the middle of the financial crisis.

Keywords: Trade policy; industrial policy; China; VAT system; export tax (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1043951X16300669
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports? (2017)
Working Paper: Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports? (2016)
Working Paper: Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports? (2016)
Working Paper: Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:40:y:2016:i:c:p:105-120

DOI: 10.1016/j.chieco.2016.06.004

Access Statistics for this article

China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().