This paper documents that an increase in the enforcement of value-added tax (VAT) caused by the adoption of a new technology significantly increased VAT payments by large manufacturing firms in China. The reform contributed to 27.1% of VAT revenues and 12.9% of total government revenues in the...

This paper uses a balanced panel of large manufacturing firms to provide novel evidence on the dynamic effects of computerizing VAT invoices on tax revenues and firm behavior in China, 1998-2007. We find that computerization explains 14.38% of cumulative VAT revenues and increases the effective...

"Focusing on the interconnection of tariff structure, international trade and welfare evaluation, the book investigates the characteristics of tariff structures of China and the U.S. in recent years and measures the impact of the Sino-U.S. trade friction that started in 2018. The first part of...

This paper develops a monopolistic competition model of multiproductfirms to explain the effect of trade liberalization on the product mix of multiproductexporting firms. The model shows that input-tariff reduction leads to increasesin a firm’s export values, especially for products that are...

This paper presents theory and evidence from highly disaggregated Chinese data that tighter credit constrains force firms to produce lower quality. The paper modifies Melitz's (2003) model of trade with heterogeneous firms by introducing quality choice and credit constraints. The quality sorting...