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Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?

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  • Stéphanie Monjon
  • Julien Gourdon
  • Sandra Poncet

Abstract

This work investigates the motivations behind the Chinese fiscal policy on exports. It relies on very detailed product level (HS 6 digit) data over the period 2002-12 covering both export tax and export VAT rebate. It aims to uncover the respective importance of the various policy motivations and how they evolved over time. Our empirical analysis relates the tax rates to proxies of official objectives pursued by the Chinese public authorities such as those related to the promotion of technology or protection of the environment but also other unstated motives pertaining to subsidization of downstream sectors and terms of trade. Our results suggest that the Chinese fiscal policy targeting exports follows a variety of objectives whose relative importance changed over the period 2002-2012.

Suggested Citation

  • Stéphanie Monjon & Julien Gourdon & Sandra Poncet, 2015. "Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?," Working Papers 2015-05, CEPII research center.
  • Handle: RePEc:cii:cepidt:2015-05
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    References listed on IDEAS

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    Cited by:

    1. Mario Cimoli & Jose Antonio Ocampo & Gabriel Porcile, 2017. "Choosing sides in the trilemma: international financial cycles and structural change in developing economies," LEM Papers Series 2017/26, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Wang Zhenhua & Zhang Guangsheng, 2016. "Industrial policy, production efficiency improvement and the Chinese county economic growth," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 34(2), pages 505-528.

    More about this item

    Keywords

    Trade policy; industrial policy; China; VAT system; export tax;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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