THE HETEROGENEOUS TAX BURDEN: EVIDENCE FROM FIRM-LEVEL DATA IN CHINA

Jianliang Ye (), Xiaohan Guo (), Deming Luo and Xiangrong Jin ()
Additional contact information
Jianliang Ye: Center for Research of Private Economy and College of Economics, Zhejiang University, 38 Zheda Road, Hangzhou, Zhejiang Province 310027, P. R. China
Xiaohan Guo: College of Economics, Zhejiang University, 38 Zheda Road, Hangzhou, Zhejiang Province 310027, P. R. China
Xiangrong Jin: Center for Research of Private Economy and College of Economics, Zhejiang University, 38 Zheda Road, Hangzhou, Zhejiang Province 310027, P. R. China

The Singapore Economic Review (SER), 2018, vol. 63, issue 04, 1003-1035

Abstract: Firms’ behaviors are not only affected by their taxation burden level, but also their differences from each other. In this paper, we use Chinese Industrial Enterprises Database (CIED) to investigate the relationship between firms’ heterogeneity of tax burden and firms’ characteristics, such as size, ownership, exportation and location. We measure a firm’s tax burden in three ways, the value-added tax (VAT) burden, the corporate income tax (CIT) burden, and the total tax burden. By using a Hausman–Taylor estimation, we find: (1) The CIT burden is positively correlated to the size, while other two tax burdens are not; (2) Both the VAT burden and the total tax burden of SOEs are significantly heavier than those of non-SOEs, while the CIT burden shows the exactly opposite effect; (3) Exporters have a remarkably lower tax burden than non-exporters for all three tax burden measures; and (4) The western region and particularly the central region have lighter tax burden than the eastern region for all three tax burden measures. We also provide empirical evidence and policy suggestions for continuing to proceed with the structural tax reduction and the structural fiscal reform in China.

Keywords: Tax burden; size; ownership; exportation; location; structural tax reduction (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590817420073
Access to full text is restricted to subscribers

Related works:
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:wsi:serxxx:v:63:y:2018:i:04:n:s0217590817420073

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590817420073

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().