Although studies of aggregate investment flows provide consistent evidence that capital is attracted to low wages, there is almost no empirical support for this proposition from plant-level location choice studies. We examine the provincial location choices of firms investing in China during...

Many production firms use intermediary trading firms to export indirectly. This paper uses Chinese export data at the transaction level to investigate the tax evasion motive through indirect trade. The paper provides strong evidence that, under China's partial export value-added tax rebate...