With Dr. Nancy QIAN (Northwestern University)
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 average tax rate by approximately 4.7-14% in the seven subsequent years. The evidence suggests that the effects of computerization change over time: tax revenue gains are likely to be smaller in the long run. Meanwhile, firms reduce output and input, and increase productivity monotonically over time.
About the speaker: Nancy Qian is a professor of MEDS. She is a native of Shanghai, China, and holds a Ph.D. in Economics from MIT. Prior to Kellogg, her research provides empirical evidence for a set of core questions in development economics that broadly fall into four sub-categories: demography and development, geography and development, institutions and development and culture and development. Her research has been published in top academic journals and featured in media outlets such as the Wall Street Journal and National Public Radio. She is the recipient of numerous prestigious awards and serves in several editorial positions. Nancy has also consulted for development agencies such as the World Bank, the Global Development Network and the China Development Bank.
A light lunch will be served, please RSVP to cals@allard.ubc.ca