Yang, Longjian; Li, Shigang; Liu, Shengyu; Yin, Heng - In: China economic quarterly international : CEQI 1 (2021) 4, pp. 331-343
Value-added tax (VAT) is shared between central and local governments, and is levied based on firms' production location, which provides incentives for local governments to intervene in firms' production. This paper investigates how local governments' VAT retention rate affect firms' capacity...