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Taxation and Economic Growth in China

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Author Info
Roger H. Gordon (University of California at San Diego)
Wei Li (University of Virginia)

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Abstract

China’s economic growth during the past twenty years has been breathe taking. As of the early 1980’s China was one of the poorest countries in the world. The economy was almost entirely state-owned. Virtually all allocation decisions were made through the government planning ministries. Goods were largely rationed, prices were only an accounting convention and the economy was largely closed. Since then, per capita GDP has grown by a factor of at least five. The country has largely shifted to a market economy, most industries are highly competitive and international trade with the rest of the world is large and growing. There is now a vibrant private sector, rapid FDI, and a thriving stock market. The objective of this paper is to focus on the role of the tax system in the development process.

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File URL: http://www.eaber.org/intranet/documents/41/187/CUHK_Gordon_02.pdf
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File Function: First Version, 2005
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Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 187.

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Length: 28 pages
Date of creation: May 2002
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Handle: RePEc:eab:develo:187

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Related research
Keywords: China development tax system taxation economic growth

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Li, David D., 1996. "A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector," Journal of Comparative Economics, Elsevier, vol. 23(1), pages 1-19, August. [Downloadable!] (restricted)
  2. Chow, Gregory C., 1987. "Money and price level determination in China," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 319-333, September. [Downloadable!] (restricted)
  3. David D. Li, 1996. "A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector," William Davidson Institute Working Papers Series 8, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  4. Roger H. Gordon & Julie Berry Cullen, 2002. "Taxes and Entrepreneurial Activity: Theory and Evidence for the U.S," NBER Working Papers 9015, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Wei Li, 2001. "Corruption and Resource Allocation: Evidence from China," William Davidson Institute Working Papers Series 396, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  6. Burgess, Robin & Stern, Nicholas, 1993. "Taxation and Development," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 762-830, June. [Downloadable!] (restricted)
  7. Roger H. Gordon & John D. Wilson, 2001. "Expenditure Competition," NBER Working Papers 8189, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Chow, Gregory C, 1985. "A Model of Chinese National Income Determination," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 782-92, August. [Downloadable!] (restricted)
  9. Chow, Gregory C, 1993. "Capital Formation and Economic Growth in China," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 809-42, August. [Downloadable!] (restricted)
    Other versions:
  10. Gordon, Roger H, 2001. "Taxes and Privatization," CEPR Discussion Papers 2977, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hallward-Driemeier, Mary & Wallsten, Scott & Lixin Colin Xu, 2003. "The investment climate and the firm : firm-level evidence from China," Policy Research Working Paper Series 3003, The World Bank. [Downloadable!]
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