Take Action

Home | Faculty & Research Overview | Research

Research Details

The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms

Abstract

This paper uses a balanced panel of large manufacturing firms to study the dynamic effects of computerizing VAT invoices on tax revenues and firm behavior in China, 1998-2007. We find that computerization explains 10.8% of cumulative VAT revenues and increases the effective average tax rate by approximately 9-12% in the seven subsequent years. The evidence suggests that the effects of computerization change over time: tax revenue gains are likely to be smaller in the long run, while firm output contract monotonically over time.

Type

Working Paper

Author(s)

Nancy Qian, Jaya Wen, Liu Yu

Date Published

2021

Citations

Qian, Nancy, Jaya Wen, and Liu Yu. 2021. The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms.

LINK
KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more