@techreport{bc58b5f962174eaa8bb7c0e2ac5e82e6,
title = "VAT Rate Dispersion and TFP Loss in China's Manufacturing Sector",
abstract = "The paper studies dispersion in the effective VAT rate, a directly measurable distortion, across manufacturing firms in China and assesses its impact on aggregate production efficiency through mis-allocation from 2000 to 2007. Using a structural model based on Hsieh and Klenow (2009), I find that a revenue-neutral tax reform which eliminates the dispersion in VAT rates alone produces a gain in aggregate TFP in the order of 7.9% of GDP on average in the period from 2000 to 2007.",
keywords = "China, TFP, VAT, mis-allocation",
author = "Chen, {Shawn Xiaoguang}",
year = "2015",
language = "English",
series = "Economics Discussion Papers",
publisher = "UWA Business School",
number = "34",
address = "Australia",
type = "WorkingPaper",
institution = "UWA Business School",
}