Past Seminars and Events

The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms

Publish Time:2019-05-29

Date & Time:May 29, 2019  10:00- 11:30a.m.

Venue:SEM411 Meeting Room

Speaker:Nancy Qian(Northwestern University

Inviter:Ding Lu


This study 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. The findings reveal 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.

Speaker Biography

Nancy Qian is a Chinese American economist and currently serves as the James J. O'Connor Professor in the Kellogg School of Management Managerial Economics and Decision Sciences and a Professor by Courtesy at the Department of Economics at Northwestern University. She is a native of Shanghai and holds a Ph.D. in Economics from MIT. Her research interests include development economics, political economy and economic history. She is a leading development economist and an expert of the Chinese economy.