Our study shows that China's export value-added tax (VAT) rebate system is a major industrial policy affects its exports. We use data at the HS6 product level for panel of 329 Chinese cities over 2003–2012 period to assess how changes in VAT have affected performance. consider different trade margins terms volumes, prices, and number countries served. To counter endogeneity, we exploit variatio...

This article used China as an example to study how tax reform affects the innovative behavior of companies. Our research showed that value-added (VAT) can affect corporate innovation behavior. On basis patent-application data Chinese enterprises, we difference-in-differences framework differences in performance industrial enterprises patent applications before and after China’s 2009 VAT reform....