Firm investment and exporting: Evidence from China's value-added tax reform

• 成果类型: Article
• 署名作者: Liu, Qing; Lu, Yi
• 署名单位: University of International Business & Economics; National University of Singapore
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2015.07.003
• 发表日期: 2015
• 页码: 392-403
• 关键词: Value-added tax reform

摘要

This paper contributes to the literature by identifying the causal effect of firm investment on exporting behavior. The identification hinges on regional variations in the 2004 value-added tax pilot reform in China, which generated positive investment shocks. The instrumental variable estimation results show that firm investment significantly and substantially increases the likelihood of exporting, and this effect is largely due to the positive effect of firm investment on firm productivity. Finally, the paper documents some heterogeneity of the effect across industries with different degrees of competition and financial constraints. (C) 2015 Elsevier B.V. All rights reserved.