refund of the domestic VAT paid on their inputs. This paper investigates how changes in the VAT rebates affect export … performance in China. Our empirical analysis relies on export volume data at the HS6 product level over the 2003-12 period. To … percentage point increase in the VAT rebate can lead to a 7% increase in export volumes. This magnitude allows to better …

export a product than to sell it domestically, as export - ers may not receive a complete refund on the domestic VAT they … been led China to be accused of providing its firms with an unfair advantage in global trade. We use city-specific export … export performance. Our identification strategy relies on triple difference estimates that exploit an eligibility rule which …