IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v80y2023icp894-909.html
   My bibliography  Save this article

Does corporate income tax reduction prompt firm export concentration?

Author

Listed:
  • Chen, Jin
  • Li, Dan
  • Liang, Jingjing
  • Sun, Churen

Abstract

Analyzing the impact of changes in corporate income tax policy on firm exports provides a critical assessment of the effectiveness of tax policies in stimulating export growth. It offers insights into the influence of tax policies on intra-firm resource allocation efficiency. However, there is limited attention in the literature devoted to examining firms’ export responses to these tax policy shifts, often overlooking the underlying mechanisms. This study investigates the causal relationship between reduction in corporate income tax rate and adjustment in export structure, employing a difference-in-differences approach and drawing on data from Chinese manufacturing firms between 2000 and 2013. Our findings indicate that China’s corporate income tax reform in 2008 heightened the concentration of firms’ export products by enhancing labor productivity and facilitating the accumulation of fixed assets. Additionally, this tax reduction expanded the range of exported products and increased the proportion of firms’ core and high-technological products.

Suggested Citation

  • Chen, Jin & Li, Dan & Liang, Jingjing & Sun, Churen, 2023. "Does corporate income tax reduction prompt firm export concentration?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 894-909.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:894-909
    DOI: 10.1016/j.eap.2023.09.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623002321
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.09.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:894-909. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.