Does value-added tax reform in services accelerate enterprise upgrading? Micro evidence from China

Peng, Fei; Wang, Sheng; Shi, Xing; Wu, Huaqing

doi:10.1080/00036846.2021.1975029

Cited by 10 publications

(5 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Peng et al [25] investigated the impact of VAT reform in the service sector on enterprise upgrading during China's transition period. By using 2009-2017 Chinese listed company data and differentiated methods, it is proved that the reform has accelerated the process of enterprise upgrading.…”

Section: Literature Reviewmentioning

confidence: 99%

Analyze the impact of the transition from business tax to VAT on the tax burden of transport enterprises in various regions of China

Ma¹,

Leontyeva²,

Domnikov³

2022

JTR

View full text Add to dashboard Cite

In recent years, the transportation industry has enjoyed the benefits brought about by changes in the national tax policy. The purpose of this paper is to analyze the impact of the change from Business Tax to Value-Added Tax (BT-to-VAT) on the tax burden of transport enterprises in various regions of China. Based on the cross-regional characteristics of the transportation industry, China is divided into four regions: eastern, central, western and northeast. Research hypothesis – the tax reduction effect of the BT-to-VAT tax burden is not only related to the characteristics of the enterprise itself, but also related to the regional environment and market integration factors of China. Using the Difference in differences (DID) method, the data covers 22 listed companies from 2009 to 2020. The paper analyzes the internal characteristics of the enterprise itself, the influence of the external environment and the degree of industrial integration on the enterprise, and the reasons for the difference. Empirical research shows that BT-to-VAT reduces the tax burden of enterprises, the eastern region has the least impact on the ratio of corporate income tax expenses to operating income, while the central and western regions have relatively greater impacts. The scale of the enterprise and the level of economic development have a positive effect on the financial efficiency of the enterprise, while the non-current assets ratio and the degree of market integration have a negative effect on the tax burden. This research is beneficial to provide reference for enterprises in different regions to improve their management and to formulate macro policies by relevant national departments.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Analyze the impact of the transition from business tax to VAT on the tax burden of transport enterprises in various regions of China

Ma¹,

Leontyeva²,

Domnikov³

2022

JTR

View full text Add to dashboard Cite

show abstract

“…The above results prove that the VAT reform did increase the sophistication of enterprise exports through its effects on innovation and the labour market. 3 The primary product and labour-intensive sectors include coal mining and washing, oil and gas mining, ferrous metal mining and dressing, nonferrous metal mining and dressing, nonmetallic mining and dressing, other mining, agricultural and sideline food processing, food manufacturing, beverage manufacturing, tobacco products, textiles, clothing, footwear and hat manufacturing, leather, fur, feathers (velvet) and related products, wood and bamboo processing, rattan and palm grass products, furniture manufacturing, paper and paper products, petroleum processing, coking and nuclear fuel processing, chemical bre manufacturing, nonmetallic mineral products, and nonferrous metal smelting and rolling . The medium and low-tech sectors include printing and the reproduction of recording media, the manufacturing of cultural, educational and sporting goods, rubber products, ferrous metal smelting and rolling, metal products, general equipment manufacturing, special equipment manufacturing, transportation equipment manufacturing, electrical machinery and equipment manufacturing, electricity and heat production and supply.…”

Section: The Effect Of the Reform On Innovation And The Marketmentioning

confidence: 99%

Does value-added tax reform increase the sophistication of enterprise exports? Evidence from China

Guo

Lin

Sun

2022

Preprint

View full text Add to dashboard Cite

Value-added tax (VAT) is a neutral tax widely adopted around the world that is conducive to easing the tax burden of central and local governments and promoting enterprise innovation. Using the micro-data of China's industrial enterprises from 2000 to 2007,this paper takes the VAT reform in Northeast China as a quasi-natural experiment to explore the impact of reform on the export sophistication of enterprises. This study reveals that the VAT reform increases the sophistication of enterprises' export, and the influence of reform on the export sophistication is found to be insignificant not only for state-owned enterprises but also for medium and low-tech sectors’ enterprises. Moreover, the mechanism analysis shows that the VAT reform stimulates the vitality of enterprise innovation and increases investment in R&D, thereby increasing the sophistication of exported products. The research in this paper is helpful not only for deepening our understanding of the significance of VAT reform but also for further improving policy measures to promote the high-quality development of export trade. JEL:H25,P25,D22

show abstract

“…For example, Peng et al. (2022) investigated the impact of VAT reform on enterprise upgrading during China's transition period, while Zou et al. (2019) utilized the VAT reform as a natural experiment to examine its effects on a firm's leverage.…”

Section: Introductionmentioning

confidence: 99%

“…In recent years, there has been a growing body of research focusing on the economic effects of VAT reform. For example, Peng et al (2022) investigated the impact of VAT reform on enterprise upgrading during China's transition period, while Zou et al (2019) utilized the VAT reform as a natural experiment to examine its effects on a firm's leverage. Incorporating VAT into a theoretical model, Wu et al (2021) discovered that the reform significantly increased the domestic value-added rate of firms' exports.…”

mentioning

confidence: 99%

Tax incentives and corporate innovation: Evidence from China's value‐added tax reform

Wang,

Liu,

Xie

et al. 2023

Contemporary Economic Policy

View full text Add to dashboard Cite

Innovation is crucial for technological progress and economic development. Using the value‐added tax (VAT) reform in China as a policy shock, this study explores whether tax incentives are beneficial in promoting corporate innovation. We find that the VAT reform has a significant positive impact on corporate innovation, and the finding holds under a series of robustness checks. Mechanism analysis suggests that the VAT reform promotes firms' innovation activities mainly by alleviating financing constraints and amplifying research and development intensity. This study offers policy implications for using tax policies to stimulate corporate innovation.

show abstract

Does value-added tax reform in services accelerate enterprise upgrading? Micro evidence from China

Cited by 10 publications

References 33 publications

Analyze the impact of the transition from business tax to VAT on the tax burden of transport enterprises in various regions of China

Analyze the impact of the transition from business tax to VAT on the tax burden of transport enterprises in various regions of China

Does value-added tax reform increase the sophistication of enterprise exports? Evidence from China

Tax incentives and corporate innovation: Evidence from China's value‐added tax reform

Contact Info

Product

Resources

About