to exporters. Indeed, China’s VAT system is not neutral, in particular because the exporters may not receive complete … performance in China. Our empirical analysis relies on export volume data at the HS6 product level over the 2003-12 period. To … understand the strong resistance of China’s exports amid the global recession. …

Compared to most countries, China’s value-added tax (VAT) system is not neutral and makes it less advantageous to … been led China to be accused of providing its firms with an unfair advantage in global trade. We use city-specific export …