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

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wp2015-05.pdf (766.6Kb)
Date
2015
Publisher city
Paris
Collection title
Centre d’Etudes Prospectives et d’Informations Internationales
Collection Id
2015
Dewey
Economie internationale
Sujet
export tax; Trade policy; VAT system; China; industrial policy
JEL code
F.F1.F10; F.F1.F14; Q.Q5.Q56
URI
https://basepub.dauphine.fr/handle/123456789/15040
Collections
  • LEDa : Publications
Metadata
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Author
Gourdon, Julien
170020 Centre d'études prospectives et d'informations internationales [CEPII]
Monjon, Stéphanie
status unknown
Poncet, Sandra
170020 Centre d'études prospectives et d'informations internationales [CEPII]
Type
Document de travail / Working paper
Item number of pages
29
Abstract (EN)
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 followsa variety of objectives whose relative importance changed over the period 2002-2012.

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