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The Golden Tax Project, value-added tax statistics, and the analysis of internal trade in China

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Listed:
  • Xing, Weibo
  • Whalley, John

Abstract

This paper utilizes a previously unavailable database on the commodity transactions of firms to analyze internal trade in China. This database is built from value-added tax (VAT) invoices collected under a comprehensive management information system, the Golden Tax Project (GTP). This project was established in 1994 to monitor and administer VAT collection and has been improved over the subsequent years. We present the structure, function, and evolution of the GTP, which provides reliable information on transaction values across provinces. We have access only to part of the GTP data set relevant to internal trade. The data suggests that internal trade in China has grown quickly but with seasonal fluctuations. Although the interprovincial trade in China is smaller than the interstate trade in United States and the intra-European Union trade, the high growth rate of the interprovincial trade suggests that economic connections among the provinces are strengthening. The positive relationship between internal trade and international trade in most regressions suggests the possible complementarity between these two types of trade.

Suggested Citation

  • Xing, Weibo & Whalley, John, 2014. "The Golden Tax Project, value-added tax statistics, and the analysis of internal trade in China," China Economic Review, Elsevier, vol. 30(C), pages 448-458.
    • Handle: RePEc:eee:chieco:v:30:y:2014:i:c:p:448-458
    DOI: 10.1016/j.chieco.2014.05.005
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    Cited by:

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    6. Yilmazkuday, Hakan, 2012. "Understanding interstate trade patterns," Journal of International Economics, Elsevier, vol. 86(1), pages 158-166.
    7. He, Yuhan & Yi, Yang, 2023. "Digitalization of tax administration and corporate performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 90(C).
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    9. Saileshsingh Gunessee & Cheng Zhang, 2022. "The economics of domestic market integration," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1069-1095, September.
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    More about this item

    Keywords

    Value-added tax; Tax administration; Internal trade;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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