Compared to most countries, China’s value-added tax (VAT) system is not neutral and makes it less advantageous to export a product than to sell it domestically, as export - ers may not receive a complete refund on the domestic VAT they have paid on their inputs. However, the large and frequent...

During the last decade, the Chinese government has frequently changed the value added tax (VAT) refund levels offered to exporters. Indeed, China’s VAT system is not neutral, in particular because the exporters may not receive complete refund of the domestic VAT paid on their inputs. This...

The starting point of this paper is given by country situations where trade liberalization is expected to be poverty and inequality alleviating in the long run while inducing a short run increase in poverty or in inequality. The question we ask is what are the distributive aspects of trade which...