• The Productivity Effects of Corporate Income Tax: Evidence from China

    6 days ago - By The World Economy

    Abstract
    With a persistent global economic slump, governments encourage economic growth by expansionary fiscal policies through tax cuts. Total factor productivity is an important determinant of corporate development and economic growth. Taking China's 2008 Corporate Income Tax Reform as a quasi-natural experiment, this paper uses data from China's A-share listed companies from 2003 to 2018 and difference-in-differences analyses to identify the impact of corporate income tax rate changes on TFP. The findings indicate that reducing the CIT rate positively impacts corporate TFP through two...
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