While China was reducing tariffs as part of the WTO accession process, it was also effectively restricting exports in some sectors by reducing the rebates of the value added tax (VAT) for exporters. We use a multi-sector multi-country Ricardian model to examine the extent to which these de facto...

While China reduced tariffs as part of the WTO accession process, it also reduced the rebates of the value added tax (VAT) for exporters. We use a multi-sector multi-country Ricardian model to examine the extent to which these de facto export tax changes benefited China and nullified the...